Mumbai, 18 April (Commoditiescontrol) Malaysian palm oil futures edged higher Thursday after four consecutive sessions of losses. However, prices were range bound trade and remained near their lowest level in more than six weeks, squeezed by expectations of slowing demand after the end of the Eid al-Fitr festive season.
The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives (BMD) Exchange gained 9 ringgit, or 0.22%, to 4,021 ringgit ($841.92) a metric ton by the midday break, hovering near 3,986 ringgit – its lowest closing level since March 5.
Exports of Malaysian palm oil in March gained 28.61% on-month to 1.32 million metric tons on higher demand during the Ramadan and Eid al-Fitr festivals. However, traders have to say that demand is likely to remain lower as the festivities wrap up and amid more attractive pricing against rival vegetable oils.
Meanwhile, a Russian drone attack on Ukraine's Ivano-Frankivsk region targeted critical infrastructure today, with debris causing fires, the governor said.
Geopolitical tensions and missile attacks on Ukraine on port infrastructure will create logistical issues, which could trigger bullishness in the vegoils market, a trade analyst said.
Dalian's most-active soyoil contract dropped 0.45%, while its palm oil contract fell 1.1%. However, CBOT soyoil prices were up 0.5% during Asian hours.
Palm oil usually takes directions from the price movements in related oils as they compete for a share in the global vegetable oils market.
India's oilmeal exports in 2023/24 rose sharply by 13% compared to last year which the highest level in a decade as shipments of soymeal more than doubled, as per SEA, the leading industry body.
Crude oil prices fell over 3% in the previous session as the market remains concerned about demand this year and on signs that a wider conflict in the key Middle East producing region could be avoided. We know, Weaker crude oil prices make palm less attractive for biodiesel feedstock.
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