The April contract of Palm oil closed the session this Tuesday (11) with a slight increase of 4.75 points and 0.45% on the Malaysian Derivatives Exchange (MDEX), quoted at US$ 1,049.00/ton.
On the other hand, the May maturity fell 1.75 points and 0.17%, to US$ 1,016.00/t. In this trading session, the drop in Malaysian stocks and the increase in imports from India boosted commodity prices.
The information from the Malaysian Palm Oil Board (MPOB) continues to resonate, reporting a 4.31% drop in total stocks of the commodity in Malaysia. As a result, the volume fell to 1.51 million tons, thus reaching the lowest level in 22 months.
Meanwhile, the Solvent Extractors Association of India reported an increase in the country's palm oil imports. In February, the import volume grew by 35.7% compared to January. With this, imports reached 373,549 thousand tons.
Limiting further gains, the negative yield of palm oil on the Dalian Commodity Exchange (DCE), which fell 2.42% in trading, pressured commodity prices. In addition, soybean oil also closed lower, falling 1.92%.
The Malaysian cargo surveyors’ report continues to reverberate in the market. They reported a decline in palm oil exports between 25.8% and 38.3% in the period March 1-10. This decrease was recorded compared to the same period in February.
Furthermore, the Malaysian ringgit strengthened 0.25% against the dollar, making palm oil less attractive to foreign buyers.
Source: datagro
