KUALA LUMPUR, April 15: Malaysian palm oil futures rallied after export estimates for the first half of April met trade expectations when they were issued on Monday, dealers said.
Sentiment was also aided by a rising Indonesian rupiah, which made palm oil products from Jakarta less competitive against Malaysian material, and speculation that India may buy more palm oil to cover a shortage in edible oil stocks.
At the close, Kuala Lumpur’s benchmark third-month June palm oil futures was up 12 ringgit at 1,189 ($313) a ton.
The contract soared as high as 1,199 ringgit before shedding some gains on profit-taking. Dealers estimated support for the third-month at 1,177 ringgit and resistance at 1,200.
Overall market volume was heavy, surpassing 2,370 lots.
Societe Generale de Surveillance, an exports tracker closely watched by the market, said in the afternoon that shipments for the first half of April were estimated at 391,083 tons against 429,832 for the same period in March.
The market had expected around a figure of around 400,000 tons, but what we saw was not too bad, said a trader.
With the way things are going, April exports may touch 900,000 tons, he added. March’s figure was 890,705 tons.
Earlier in the day another cargo surveyor, Intertek Testing Services, said it estimated palm oil exports for April 1-15 at 377,298 tons against 456,091 for the first 15 days of March.
Sentiment was also underpinned by a bullish rupiah, which was at 9,380 to a dollar at 1010 GMT, against last week’s 9,500.
Despite high import taxes, palm oil had proven to be a viable solution for the Indian crisis as prices of Indian oils had also risen lately, said dealers in Kuala Lumpur.
In Monday’s physical palm oil market, the April contract for the southern region saw a closing offer of 1,187 ringgit a ton, up 7.50 ringgit from Friday. Bids closed at 1,182.50. Business was reported at 1,185 in the late session and between 1,180 and 1,190 at the midday break.
April central saw a closing offer of 1,187.50 and a final bid of 1,185.
Deals were reported at 1,180-1,190 in the morning and at 1,190-1,185 at the close.
The May contract for both south and central saw a closing offer of 1,190 ringgit against a final bid at 1,185. Deals were reported at 1,190 at the close.—Reuters