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By Mei Mei Chu
KUALA LUMPUR, March 13 (Reuters) – Malaysian palm oil futures slipped after trading in a tight range on Monday, under pressure from weakness in rival Dalian edible oils, although the contract was supported by lower inventories and upbeat export demand.
The benchmark palm oil contract FCPOc3 for May delivery on the Bursa Malaysia Derivatives Exchange slid 9 ringgit, or 0.22%, to 4,048 ringgit ($903.57) a tonne by the midday break.
“CPO price is likely to be supported due to concerns over lower palm oil exports from Indonesia and weaker supply growth from Malaysia,” Ivy Ng, regional head of plantations research at CGS-CIMB Research, said in a note.
Exports from Malaysia during March 1-10 surged between 45.3% and 52.1% from a month-ago levels, cargo suveryors said on Friday.
CGS-CIMB forecast palm oil stocks to fall by 13% to 1.84 million tonnes month-on-month by end-March due to higher exports demand ahead of the Eid festival and slower growth in supply due to floods in Malaysia.
Palm oil prices are expected to stay supported at 4,000 ringgit ($885.15) a tonne in the near term due to tight availability of surplus, the Malaysian Palm Oil Association (MPOA) said on Saturday.
Dalian’s most-active soyoil contract DBYcv1 fell 1.4% while its palm oil contract DCPcv1 lost 1.5%. Soyoil prices on the Chicago Board of Trade BOcv1 were up 0.7%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Palm oil may drop more into a range of 4,006 ringgit to 4,052 ringgit per tonne, driven by a wave c, Reuters technical analyst Wang Tao said. TECH/C
($1 = 4.4800 ringgit)
(Reporting by Mei Mei Chu; Editing by Sherry Jacob-Phillips)
((Meifong.chu@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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