Palm edges up on bullish output forecasts

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KUALA LUMPUR (April 9): Malaysian palm oil futures charted a sixth day of gains in seven on Tuesday evening, as the market cheered a bullish outlook on March production and inventory levels. 

Traders expect Malaysian Palm Oil Board on Wednesday to show declines in March end-stocks, because of strong exports and only slight gains in output.  

The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange was up 0.6% at 2,212 ringgit (US$540.57) a tonne at the close.  

"All the polls are quite bullish, hence the continuation of the market's uptrend," said one Kuala Lumpur-based trader. 

Malaysia's palm oil stockpiles in March are likely to have dropped by 6.4% from February to 2.85 million tonnes, the lowest in five months, a Reuters survey showed, with a hefty jump in exports outpacing production gains.

The market was also expecting export data for the first 10 days in April to show gains from the corresponding period in March, another futures trader said.

Malaysian palm oil export data from cargo surveyors for the April 1-10 period is scheduled for release after 0300 GMT on Wednesday.     

In related oils, the Chicago May soybean oil contract was up by a marginal 0.03%, while the May soyoil contract on the Dalian Commodity Exchange gained 0.3%. 

The Dalian May palm oil contract, meanwhile, advanced by 1%.

Palm oil prices are affected by movements in soyoil, with which it competes in the global vegetable oil market. 
        
 Palm, soy and crude oil prices at 1100 GMT

Contract Month Last Change Low High Volume
MY PALM OIL APR9 2162 +9.00 2160 2162 50
MY PALM OIL MAY9 2193 +9.00 2193 2215 1066
MY PALM OIL JUN9 2211 +12.00 2210 2232 17504
CHINA PALM OLEIN MAY9 4520 +44.00 4440 4526 260584
CHINA SOYOIL MAY9 5466 +16.00 5414 5474 102948
CBOT SOY OIL MAY9 28.89 +0.01 28.78 29.03 6215
INDIA PALM OIL APR9 543.30 -0.50 543.30 548.7 568
INDIA SOYOIL APR9 748.7 -0.10 748.65 752 6040
NYMEX CRUDE MAY9 64.51 +0.11 64.33 64.79 123660

 Palm oil prices in Malaysian ringgit per tonne
 CBOT soy oil in U.S. cents per pound
 Dalian soy oil and RBD palm olein in Chinese yuan per tonne
 India soy oil in Indian rupee per 10 kg
 Crude in U.S. dollars per barrel
 
(US$1 = 4.0920 ringgit)
(US$1 = 6.7110 Chinese yuan)
(US$1 = 69.3250 Indian rupees)