KUALA LUMPUR (April 9): Malaysian palm oil futures climbed over 1% in the first half of trade on Tuesday, as the market cheered bullish outlook on March production and inventory levels.
Traders expect data from the Malaysian Palm Oil Board scheduled for release on Wednesday to show declines in March end-stocks, as exports remain strong and output gains are slight.
The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange was up 1.2% at RM2,227 (US$543.97) a tonne at the midday break, marking its strongest gain in three sessions.
"All the polls are quite bullish, hence, the continuation of the market's uptrend," said a 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, its lowest in five months, according to a Reuters survey, as a hefty jump in exports outpaced production gains.
The market was also expecting export data for the first 10 days in April to show gains compared with the corresponding period in March, another futures trader said.
Malaysian palm oil export data for the 1-10 April period from cargo surveyors are scheduled for release after 0300 GMT on Wednesday.
In other related oils, Chicago May soybean oil contract was up 0.2%, and the May soyoil contract on the Dalian Commodity Exchange dropped 0.3%.
Meanwhile, the Dalian May palm oil contract gained 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 0449 GMT
|MY PALM OIL||APR9||0||+0.00||0||0||0|
|MY PALM OIL||MAY9||2209||+25.00||2195||2210||557|
|MY PALM OIL||JUN9||2227||+27.00||2210||2229||6795|
|CHINA PALM OLEIN||MAY9||4490||+14.00||4440||4494||167146|
|CBOT SOY OIL||MAY9||28.94||+0.06||28.78||28.98||3571|
|INDIA PALM OIL||APR9||548.00||+4.20||546.20||548.5||120|
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 = RM4.0940)
(US$1 = 6.7137 Chinese yuan)
(US$1 = 69.5175 Indian rupees)