Mumbai, 20 Jan (Commoditiescontrol): Malaysian crude palm oil (CPO) futures rose for a second consecutive session on Monday, supported by gains in Dalian vegetable oil prices. Traders are now looking to Malaysian palm oil export data for the January 1-20 period to guide further market direction.
The benchmark palm oil contract for April delivery on the Bursa Malaysia Derivatives Exchange advanced by 31 ringgit, or 0.74%, to 4,221 ringgit ($938.00) per metric ton. This follows a sharp 4.51% loss recorded last week.
In China, the Dalian Commodity Exchange saw strong performances in vegetable oils. The most active soyoil contract climbed 1.72%, while the palm oil contract rose 0.99%. However, trading on the Chicago Board of Trade remained closed on Monday due to a public holiday.
India, the world’s largest palm oil importer, is expected to see its palm oil imports drop to their lowest levels in nearly five years this January. Unfavorable refining margins and palm oil’s premium pricing over alternatives like soyoil have driven buyers toward more affordable options.
Meanwhile, preliminary data on Malaysian palm oil exports from January 1-15 indicates a decline. Cargo surveyors Intertek Testing Services and AmSpec Agri Malaysia estimate that exports of Malaysian palm oil products fell by 15.5% to 23.7% during this period.
Additionally, Indonesia's decision to temporarily freeze subsidies for its mandatory palm oil biodiesel and re-planting programs has raised concerns. The freeze comes as the country reorganizes its palm oil fund agency, with officials aiming to resolve the transition swiftly.
With weaker exports and fluctuating demand dynamics, traders are keeping a close eye on upcoming export data for further cues on market trends.
(By Commoditiescontrol Bureau: 09820130172)