KUALA LUMPUR: Malaysian palm oil futures rose on Monday, paring sharp losses from the previous session, as industry estimates of weaker September output amid a surge in exports raised concerns over a decline in inventories.
The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange rise 48 ringgit, or 1.07%, to 4,553 ringgit ($1,091.85) a tonne in early trade, after declining nearly 2% in the previous session.
Fundamentals
The Southern Peninsula Palm Oil Millers’ Association estimated production in September declined 2.3% from the month before, traders said on Friday.
Exports of Malaysian palm oil products for September rose 43.2% to 1.7 million tonnes from August, cargo surveyor Societe Generale de Surveillance said on Friday.
India’s palm oil imports in September more than doubled from a year ago to a record 1.4 million tonnes as buyers increased purchases of refined palm oil ahead of key festivals and to take advantage of newly lowered duties.
Soyoil prices on the Chicago Board of Trade were down 1.12%. The Dalian exchange is closed until Thursday for a public holiday.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Bursa Malaysia derivatives launched its new East Malaysian Crude Palm Oil Futures contract on Monday, providing investors with an avenue for price discovery of the market in East Malaysia.
