Palm extends gains to 1-month top on expectations of lower stocks

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KUALA LUMPUR (April 4): Malaysian palm oil futures hit a one-month high on Thursday, supported by expectations of better exports demand and lower stocks.    

The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange was up 0.5% at RM2,185 (US$535.80) a tonne at the midday break, heading for a fourth straight session of gains.  

It earlier rose as much as 0.7% to RM2,191, the strongest since March 4.

"The market is supported by bullish preliminary estimates that Malaysia stocks may go down," said a Kuala Lumpur-based trader.

Another trader said Malaysia's exports in March were also expected to be better than the previous month.

Malaysian palm oil stockpiles rose to their highest in nearly two decades in December, and increased unexpectedly in February by 1.3% to 3.05 million tonnes.

The Malaysian Palm Oil Board is scheduled to release March data on April 10.

In other related oils, the Chicago May soybean oil contract was up 0.1%, while the May soyoil contract on the Dalian Commodity Exchange was 0.04% higher.

The Dalian May palm oil contract was up 0.3%.

Palm oil prices are affected by movements in soyoil, as they compete for a share in the global vegetable oil market.

Palm, soy and crude oil prices at 0617 GMT

Contract          Month    Last  Change     Low    High  Volume
MY PALM OIL       APR9     2079   +9.00    2079    2079       1
MY PALM OIL       MAY9     2156  +11.00    2135    2161    1401
MY PALM OIL       JUN9     2185  +10.00    2164    2191    9322
CHINA PALM OLEIN  MAY9     4440  +12.00    4408    4448  187292
CHINA SOYOIL      MAY9     5440   +2.00    5418    5460   97812
CBOT SOY OIL      MAY9    28.82   +0.02   28.74   28.83    2046
INDIA PALM OIL    APR9   536.60   +3.10  534.30   536.8     171
INDIA SOYOIL      APR9      735   +1.65     733   737.5    2150
NYMEX CRUDE       MAY9    62.42   -0.04   62.31   62.52   25381

Palm oil prices in Malaysian ringgit per tonne
CBOT soy oil in US 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 US dollars per barrel

(US$1 = RM4.0780)
(US$1 = 6.7142 Chinese yuan)
(US$1 = 68.8330 Indian rupees)