KUALA LUMPUR, May 9: Malaysian crude palm oil futures ended off their highs on Monday as profit taking trimmed early gains posted on the back of a surge in rival US soyaoil. But trade was light ahead of official crop and trade numbers for April, and export estimates for May 1 to 10, due on Tuesday.
The benchmark third-month palm oil contract on Bursa Malaysia Derivatives, July, closed up 6 ringgit, or 0.4 per cent, at 1,422 ringgit a ton ($374.21). It rose 16 ringgit at one point to stand at an intraday high of 1,432 ringgit after a rally in the electronic trade of Chicago soyaoil futures.
Soyaoil and palm oil compete for similar export destinations and their prices often move in step. The market may be up, but there’s very little participation at this juncture as everyone’s wondering what tomorrow’s crop and export numbers could be, said a trader.
The official Malaysian Palm Oil Board will report on Tuesday production, export and closing stock numbers for April. Two cargo surveyors followed by the market — Intertek Testing Services (ITS) and Societe Generale de Surveillance — will also release export estimates for May 1 to 10.
A Reuters survey on Friday of five oil palm growers showed that production of palm oil in April had probably risen 2.5pc, while exports had declined 3.8pc and stocks had grown 2.8pc. Balancing the bearish picture was speculation that exports for May 1 to 10 could have risen to 400,000 tons — versus previous estimates of below 340,000 tons reported by ITS and SGS for April 1 to 10.
Aside from benchmark July, other palm oil futures traded on Monday settled down two to up eight ringgit. Volume was just 3,562 lots of 25 tons each. The market usually sees 6,000 lots or more on an active day. —Reuters
