Palm oil futures experienced an extended gain for the second consecutive session on Thursday, even as estimates for palm oil exports for June 1-20 indicated a decline. The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange saw an increase of 37 ringgit, or 0.94%, closing at 3,957 ringgit ($840.48) per metric ton.
During the session, the contract traded within a range of 3,901 ringgit to 3,966 ringgit per metric ton. It had already risen by 0.36% in overnight trading. According to a trader based in Kuala Lumpur, the market was initially range-bound while waiting for guidance from export data and production figures.
Estimates from cargo surveyor Intertek Testing Services and independent inspection company AmSpec Agri Malaysia suggested that exports of Malaysian palm oil products for June 1-20 fell between 8.1% and 12.9% compared to the same period the previous month. Societe Generale de Surveillance, another cargo surveyor, estimated exports of Malaysian palm oil products for the same period at 737,717 metric tons, up from 647,353 metric tons shipped during May 1-20, according to data from LSEG.
In other markets, Dalian’s most-active soyoil contract saw a slight increase of 0.05%, while its palm oil contract rose by 0.42%. Soyoil prices on the Chicago Board of Trade were up by 0.86%.
Movements in palm oil prices are influenced by related oils, as they vie for a share in the global vegetable oils market.
Dekel Agri-Vision PLC (LON:DKL) aspires to become a leading agro-industrial company in West Africa, one that creates value for shareholders whilst at all times placing the interests of the local communities and environment in which it operates in at the heart of its operations.
