KUALA LUMPUR: Malaysian palm oil futures rose on Monday as cargo surveyor data showed stronger March exports, although gains were capped by concerns about higher production.
The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange closed 0.3 per cent higher at 2,113 ringgit a tonne ($518.02), having earlier gained as much as 0.7pc to reverse part of the previous two sessions’ 1.4pc loss.
“The export numbers are encouraging, but the market has already priced (that) in,” said Anilkumar Bagani, research head of Sunvin Group, a Mumbai-based vegetable oil broker, referring to the cargo surveyor data.
Intertek Testing Services said Malaysia’s palm oil shipments in March rose 22.4pc from a month earlier, while AmSpec Agri Malaysia said exports increased 22.9pc last month.
Malaysia saw higher demand from the Middle East, Africa and China, according to ITS data.
Another cargo surveyor Societe Generale de Surveillance reported on Monday evening a 28.1pc gain over the same period.
Capping palm’s gains was a forecast that Malaysian palm oil production had risen in March, in line with a seasonal trend, after declining for the previous four months.
Published in Dawn, April 2nd, 2019