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NEWS ADMIN

DATE

20/03/2019

NEWS PROVIDER

Siti Safura Masiron

NEWS SOURCE

The Edge Markets MY

CATEGORY

HEADLINE

Palm oil rises, high stocks likely limit further 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 high stockpiles of the vegetable oil will likely continue to put pressure on prices.

The benchmark palm oil contract on the Bursa Malaysia Derivatives Exchange rose 1.1% to 2,129 ringgit (US$522.45) a tonne.

It extended a 1.8% gain on Monday, after posting a third weekly loss last week.

"Fundamentally, looking at demand, prices should still be under pressure. This is more of a technical rebound since I am not seeing big demand coming in," a palm trader in Kuala Lumpur said.

Palm was still targeting the 2,142 ringgit per tonne level, said Wang Tao, a Reuters market analyst for commodities and energy technicals.

"The next resistance will be at 2,142 ringgit, a break above which could lead to a further gain to 2,190 ringgit," Tao said.

Another trader in Kuala Lumpur said buyers did not find the prices attractive enough to notably boost demand.

"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, both traders said.

A bumper harvest last year in 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 the use of palm oil in renewable transport fuel by 2030.

   

 Palm, soy and crude oil prices at 1023 GMT     

 

 Contract                          Month      Last       Change     Low      High     Volume

 MY PALM OIL                 APR9       2060      +35.00    2018      2075        2366

 MY PALM OIL                 MAY9       2093      +24.00    2057      2110      11088

 MY PALM OIL                 JUN9        2129      +24.00    2092     2145      26109

 CBOT SOY OIL              MAY9       29.33         -0.11   29.26     29.51       6343

 INDIA PALM OIL            MAR9       22.50       +4.60  516.80     524.1         582

 INDIA SOYOIL               MAR9         764        +0.00  763.85     764.9       1560

 NYMEX CRUDE             APR9        9.39        +0.30   58.95      59.44     12895

 

(US$1 = 4.0750 ringgit)