Palm rises to 1-month peak 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 1.3% at 2,204 ringgit (US$540.06) a tonne at the close of trade in its fourth straight session of gains.  

It earlier rose as much as 1.8% to 2,214 ringgit, 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 0.6%, while the May soyoil contract on the Dalian Commodity Exchange was 0.2% higher.

The Dalian May palm oil contract was up 0.6%.

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 1105 GMT

Contract Month Last Change Low High Volume
MY PALM OIL APR9 2100 +30.00 2079 2100 5
MY PALM OIL MAY9 2172 +28.00 2135 2184 3175
MY PALM OIL JUN9 2205 +29.00 2164 2214 21464
CHINA PALM OLEIN MAY9 4456 +28.00 4408 4460 224308
CHINA SOYOIL MAY9 5448 +10.00 5418 5460 117406
CBOT SOY OIL MAY9 28.96 +0.16 28.74 28.99 7062
INDIA PALM OIL APR9 540.50 +7.00 534.30 540.7 878
INDIA SOYOIL APR9 736.5 +3.15 733 737.5 5220
NYMEX CRUDE MAY9 62.62 +0.16 62.12 62.63 109155

 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 = 4.0810 ringgit)
(US$1 = 6.7139 Chinese yuan)
(US$1 = 69.0750 Indian rupees)