KUALA LUMPUR (June 19): Malaysian palm oil futures were marginally higher in the first-half of trade on Wednesday, and are expected to trade range-bound as lower production continued to prop up sentiment amid poor exports figures from earlier this week.
The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange was 0.15% up at RM2,025 (US$485.15) per tonne at the midday break.
"So far this month, exports figures have been down but the negative sentiment towards that is somewhat evened out with lower production," a Kuala Lumpur-based futures trader said.
Cargo surveyors and an independent inspection company had over Saturday and Monday reported more than 15% falls in exports.
Malaysia's Southern Peninsular Palm Oil Millers Association reported a 26.44% drop in production on Monday.
Another trader said with ringgit strengthening against the dollar, the upside momentum would be limited.
The ringgit was 0.14% stronger against the US dollar after two previous sessions of weakening. Holders of foreign currency could find palm oil less attractive when the ringgit appreciates.
In other related oils, the Chicago July soybean oil contract dropped 0.3%.
The September soyoil contract on the Dalian Commodity Exchange fell 1.1% and the Dalian September palm oil contract was also down 0.3%.
Palm oil prices are affected by movements in related edible oils, with which it competes for global market share.
Palm, soy and crude oil prices at 0455 GMT
|MY PALM OIL||JUL9||2005||+0.00||1998||2016||101|
|MY PALM OIL||AUG9||2018||+1.00||2001||2027||4376|
|MY PALM OIL||SEP9||2025||+3.00||2007||2034||10076|
|CHINA PALM OLEIN||SEP9||4362||-14.00||4344||4374||381488|
|CBOT SOY OIL||JUL9||28.26||-0.07||28.16||28.42||2929|
|INDIA PALM OIL||JUN9||515.00||-2.00||513.30||517.2||88|
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 = RM4.1740)
(US$1 = 69.6400 Indian rupees)
(US$1 = 6.9039 Chinese yuan)