On Optimism Of Export Demand, Malaysian Palm Oil Futures Rose From A Near One-Month Low
Palm oil is a type of edible oil that has a wide range of uses, including as a preservative in a variety of foods, a common cooking oil, and even in shampoos, cosmetics, and biofuels. The oil is derived from palm fruit and stands out from other oil crops due to its higher oil content.
On 8th March 2023, Malaysian palm oil futures increased after hitting a low close to a month earlier due to optimism regarding export demand before cargo surveyor data.
Early trade saw a gain of 35 ringgit, or 0.88%, to 4,017 ringgit ($898.86) for the May delivery of the benchmark palm oil contract FCPOc3 on the Bursa Malaysia Derivatives Exchange, ending a three-day loss.
- Later in the day, data on export shipment from March 1–15 is expected to be released by cargo surveyors. Exports increased by 45% to 52% between March 1 and 10.
- According to people involved in the negotiations, the Financial Times reported on Tuesday that the UK government intends to do away with import taxes on palm oil from Malaysia as a condition of joining an Asia-Pacific trade agreement.
- Oil prices increased, making palm a more appealing option for biodiesel feedstock as a stronger OPEC outlook on Chinese demand helped counteract the negative outlook for global investors following the recent U.S. bank failures.
- After Kyiv rejected a Russian demand for a reduced 60-day renewal, talks to extend a deal to allow grain shipments from Ukraine’s Black Sea ports are continuing ahead of a deadline later this week, the United Nations and Turkey said on Tuesday.
- The most active palm oil contract in Dalian, DCPcv1, increased 1% while the soyoil contract, DBYcv1, fell 0.3%. Soybean oil prices rose 0.2% on the Chicago Board of Trade BOcv1.
Following its stabilization around a support of 3,994 ringgit, palm oil may rebound towards a resistance at 4,089 ringgit per tonne, according to Reuters technical analyst Wang Tao.
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