Palm oil inches up, tracking soyoil

Malaysian palm oil futures edged up on Thursday, tracking Chicago soyoil, as the contract consolidated after a recent fall, while market participants awaited fresh trading cues.

The benchmark palm oil contract FCPOc3 for July delivery on the Bursa Malaysia Derivatives Exchange was up 10ringgit, or 0.26%, to 3,809 ringgit per metric ton by the midday break.

The contract traded between 3,805 ringgit and 3,834 ringgit in the morning session. The contract dropped 2.48% in the previous session, its biggest daily loss since April 16.

“Bursa Malaysia crude palm oil contract is awaiting new leads in May, anticipating higher production and lower exports,” a Kuala Lumpur-based trader said.

Malaysian palm oil exports fell between 9% and 11.5% in April from a month earlier, cargo surveyors Intertek Testing Services and Amspec Agri said.

Indonesia, the world’s biggest palm oil exporter, maintained its palm oil export tax and levy unchanged for May at $52 per ton and $90 per ton, respectively.

Soyoil prices on the Chicago Board of Trade BOc2 were up 0.07%. The Dalian Commodity Exchange is closed until May 5 for International Labour day holidays.

Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.

Tags: palm oil, futures, benchmark contract, prices, Malaysia, soyoil