NEW DELHI, May 26 (Commoditiescontrol) - Malaysian palm oil futures ended nearly 2.5 percent higher on Thursday, reversing their early losses, supported by bargain buying amid tight suppllies as Indonesian oil remains absent from the global market.
The August benchmark crude palm oil contract on the Bursa Malaysia Derivatives Exchange (BMD), was up Ringgit 156 or 2.44 percent at Ringgit 6,539 per tonne by the midday break, after moving in the range of Ringgit 6,589 and Ringgit 6,289 per tonne.
Leading edible oil analyst Dorab Ministry on Thursday urged Indonesia to immediately resume exports of palm oil, warning that a halt in shipments pending details of a domestic sales rule could spell economic "doom" for farmers.
In an open letter to the Indonesian government, Mistry said the world's biggest palm oil producer and exporter was heading to a "calamitous situation" due to a cocktail of record stocks, full storage tanks, boom cycle in production, poor demand and restricted exports.
The benchmark contract fell during early trade, tracking weakness in soyoil, pressured by good planting weather forecast, as well as concerns over demand from China.
Plunging demand for soyoil in China is expected to cut consumption of the oilseed in the world's biggest user as lockdowns to prevent the spread of COVID have shuttered restaurants and canteens, according to traders and analysts.
ICE Canada canola futures fell on Wednesday after a report said Russia was ready to provide a humanitarian corridor for vessels carrying food to leave Ukraine, a major sunflower oil producer, if some sanctions were lifted.
A resumption of Black Sea sunflower oil shipments could help alleviate global supplies.
Globally, Dalian's most-active soyoil contract gained 0.05 percent, while its palm oil contract fell 0.9 percent. Soyoil prices on the Chicago Board of Trade (CBOT) were down 0.04 percent in electronic trade today.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
(By Commoditiescontrol Bureau)
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