Hellenic Shipping News (21/04/2021) - Malaysian palm oil futures recouped early losses on Tuesday, buoyed by cargo surveyor data showing better exports in April so far, although the market was weighed down by concerns over demand from key buyer India due to surging COVID-19 cases there.
The benchmark palm oil contract FCPOc3 for July delivery on the Bursa Malaysia Derivatives Exchange was up 2 ringgit, or 0.05%, at 3,712 ringgit ($902.28) a tonne by the midday break, recovering from a 0.8% drop earlier in the session.
Data released by independent inspection company AmSpec Agri Malaysia showed exports of Malaysian palm oil products during April 1-20 rose 10.2% from a month earlier.
However, a worsening coronavirus outbreak in India, the world’s biggest edible oil buyer, has dampened optimism for a sustained rise in demand.
In the European Union, the third-biggest buyer of Malaysian palm oil, imports of the tropical oil were at 4.23 million tonnes in the 2020/21 season, compared with 4.55 million tonnes a year ago, data published by the European Commission showed.
The Malaysian market is trading sideways with the most current bullish news already priced in, said a Kuala Lumpur-based trader. “The market will be looking at direction from soybean oil and sunflower oil,” he added.
Dalian’s most-active soyoil contract DBYcv1 fell 0.5%, while its palm oil contract DCPcv1 was down 0.3%. Soyoil prices on the Chicago Board of Trade BOcv1 fell 0.02%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Oil prices rose as a weaker U.S. dollar supported commodities and on expectations that crude inventories fell in the United States, though rising coronavirus cases in Asia capped gains. O/R
Stronger crude oil futures makes palm oil a more attractive option for biodiesel feedstock.
Source: Reuters (Reporting by Mei Mei Chu; Editing by Shailesh Kuber and Subhranshu Sahu)
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