Business Recorder (14/05/2020) - KUALA LUMPUR: Malaysian palm oil futures edged lower on Thursday after rival soyoil prices declined and as the world's largest palm oil producer Indonesia increased production, but losses were trimmed by higher crude oil prices.
The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange closed down 2 ringgit, or 0.1%, to 2,030 ringgit ($468.17) per tonne.
“Indonesian production is picking up and storage capacity is limited," said Paramalingam Supramaniam, director at Selangor-based brokerage Pelindung Bestari Sdn Bhd.
“Cash buyers were adopting a wait and see attitude. We suspect more selling pressure in the next session if the buyers chose to adopt a cautious stance," he added.
Dalian's most-active soyoil contract fell 0.56%, while its palm oil contract gained 0.23%. Soyoil prices on the Chicago Board of Trade were down 0.19%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Helping palm prices, oil rose after a drop in US crude stocks and an IEA forecast for lower global stockpiles in the second half.
Stronger crude makes palm a more attractive option for biodiesel feedstock.
Meanwhile, stockpiles in Malaysia, the world's second-largest palm producer, rose 18.3% from March to 2.05 million tonnes in April, its highest since December 2019.
Read more at https://www.brecorder.com/2020/05/14/596906/palm-edged-dips-on-weaker-soyoil-stronger-crude-caps-losses/