Mumbai, April 25 (Commoditiescontrol): Malaysian palm oil futures experienced a decline on Friday, in line with the downward trend observed in Dalian counterparts and amidst cautious anticipation preceding the release of monthly data by the Malaysian Palm Oil Board (MPOB). The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange dropped by 41 ringgit, or 1.07%, settling at 3,790 ringgit ($799.70) per metric ton as of 0242 GMT. This decline follows a 0.78% decrease in overnight trade, with the contract registering a cumulative decline of more than 1% for the week.
Dalian's most-active soy oil contract experienced a notable plunge of 2.07%, while its palm oil contract saw a decline of 1.99%. Conversely, soyoil prices on the Chicago Board of Trade exhibited a modest rise of 0.54%. The slow progress in soy harvesting in Brazil's Rio Grande do Sul state, as reported by the crop agency Emater on Thursday, has contributed to market dynamics. It's noteworthy that palm oil prices are influenced by movements in related oils as they vie for market share in the global vegetable oils market.
According to recent data released by the Malaysian Palm Oil Board (MPOB), Malaysia's palm oil stocks at the conclusion of April increased by 1.85% compared to the previous month, reaching 1.74 million metric tons. This marks the first month-on-month rise in six months. Concurrently, crude palm oil production witnessed a notable uptick of 7.86% from March levels, while palm oil exports experienced a decline of 6.97%.
According the soruces, the MPOB report as "slightly bearish," noting that the majority of scenarios related to production increases have already been factored into the market. He suggests that bargain buying may be observed, particularly from a key support cluster at 3,690 ringgit.
Market participants are also closely monitoring the forthcoming release of the U.S. Department of Agriculture's supply-and-demand report. Investors anticipate insights from the USDA's monthly crop production and World Agricultural Supply and Demand Estimates reports, which are expected to indicate ample supplies both in the United States and globally.
In other economic news, Malaysia's industrial production in March posted a 2.4% year-on-year increase, falling slightly below expectations based on government data released on Friday.
Additionally, the Malaysian ringgit, serving as palm oil's currency of trade, strengthened marginally by 0.04% against the dollar during this period.
Global Futures Palm oil and Soy Oil
(By Commoditiescontrol Bureau; +91-9820130172)
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