Palm oil advanced for the first time in four days as the lowest price at close this year stoked demand among importers.
The contract for delivery in June advanced as much as 1.9 per cent to RM2,381 a metric tonne on the Malaysia Derivatives Exchange, and was at RM2,375 at 4:10pm in Kuala Lumpur. Futures yesterday ended at the lowest level since December 20. Prices fell 2.5 per cent in the first quarter, the fourth quarterly loss in the worst streak since 1999.
“We’re actually near the technical support level of RM2,340, and around this level we may see some bargain hunting,” Ryan Long, vice president of futures and options at OSK Investment Bank Bhd, said from Kuala Lumpur. Gains may be capped as production is expected to improve this month, he said.
Exports from Malaysia rose 2.8 per cent to 1.36 million tonnes in March from a month ago, surveyor Intertek said yesterday. Shipments rose 5.5 per cent to 1.37 million tonnes, Societe Generale de Surveillance said. India, the world’s largest palm oil importer, today cut the benchmark import price of crude palm oil to US$829 a tonne from US$838 set on March 15, according to a Finance Ministry statement.
Soybean oil for May delivery climbed 0.2 per cent to 50.17 cents a pound on the Chicago Board of Trade, while soybeans for May gained 0.6 per cent to US$13.9875 a bushel.
Refined palm oil for September delivery gained 1.8 per cent to close at 6,228 yuan (US$1,004) a tonne on the Dalian Commodity Exchange. Soybean oil for delivery in the same month rose 0.9 per cent to end at 7,876 yuan a tonne.– Bloomberg
Source : Business Times