MPOB Palmnews
 
Date
 19/03/2019
News Provider
 Siti Safura Masiron
News Source
 The Edge Markets MY
Headline
 Palm oil edges higher, high stocks cap gains


19.03.2019 (The Edge Markets MY) - JAKARTA (March 19): Malaysian palm oil futures rose on Tuesday after hitting a three-month low last week, but a high stockpile of the vegetable oil will likely continue to pressure prices.



 



The benchmark palm oil contract on the Bursa Malaysia Derivatives Exchange rose 0.2% to RM2,109 (US$517.67) a tonne.



 



It extended a 1.8% gain on Monday after posting a third weekly loss last week, but prices were not attractive enough for buyers to notably boost demand, a trader in Kuala Lumpur said.



 



"It is true that prices are low, but people believe there is still room for them to go down. There is enough oil and production is good," the trader said.



Stockpiles remain elevated and demand subdued, keeping prices in check, the traded added.



A bumper harvest last year in both Malaysia and Indonesia, the world's major producers, had flushed the market with palm oil and sent prices tumbling.  



Meanwhile, the two nations are battling European Union's plan to phase out use of palm oil in renewable transport fuel by 2030.



Palm is still targeting the level of RM2,142 per tonne, said Wang Tao, a Reuters market analyst for commodities and energy technicals.



"The next resistance will be at RM2,142, a break above which could lead to a further gain to RM2,190," Tao said.



Palm, soy and crude oil prices at 0511 GMT

















































































Contract        



Month   



Last 



Change     



Low  



High 



Volume



MY PALM OIL     



APR9    



2033  



+8.00    



2018  



2033    



667



MY PALM OIL     



MAY9    



2072  



+3.00    



2057  



2072   



3567



MY PALM OIL     



JUN9    



2109  



+4.00    



2092  



2109   



9171



CBOT SOY OIL    



MAY9   



29.34  



-0.10   



29.32 



29.51   



1842



INDIA PALM OIL  



MAR9  



517.60  



-0.30  



516.80 



518.5     



50



INDIA SOYOIL    



MAR9  



764.05  



+0.05  



764.05 



764.9    



390



NYMEX CRUDE     



APR9   



59.06  



-0.03   



58.96 



59.14   



3903




(US$1 = RM4.0740)