Mumbai, 11 (Commoditiescontrol) Malaysian palm oil futures rose on Monday reversibg early losses as inventories in the world's second-biggest producer dipped to a seven-month low.
The benchmark palm oil contract for May delivery on the Bursa Malaysia Derivatives(BND) Exchange gained 12 ringgit, or 0.29%, to 4,106 ringgit ($876.79) by midday.
The contract rose 3.1% last week, fuelled by tight supply and optimism over palm demand.
As the market had already factored in the low production figures, attention will now turn to March export data to see if Malaysian palm oil futures can hit the 4,200 ringgit range, a Kuala Lumpur-based trader said.
Malaysia's palm oil stocks at the end of February fell 5% month-on-month to 1.92 million metric tons, their lowest in seven months, data from industry regulator the Malaysian Palm Oil Board (MPOB) showed today.
Crude palm oil production declined 10.18% from January to 1.26 million tons, while palm oil exports plunged 24.75% to 1.02 million tons, MPOB said.
Dalian's most-active soyoil contract rose 0.34%, while its palm oil contract added 0.31%. Soyoil prices on the Chicago Board of Trade were up 0.17%.
Palm oil normally takes directions from the price movements in related oils as they compete for a share in the global vegetable oils market.
Crude oil prices extended last week's losses on Monday on concern about slow demand in China, although lingering geopolitical risk surrounding the Middle East and Russia limited the decline. Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
The Malaysian ringgit depreciated 0.05% against the dollar, making the commodity less expensive for buyers holding the foreign currency.