Malaysian Palm Oil Prices Rise on Signs of Demand Pick-up of April 2020
21/04/2020 350 Readers
Malaysian palm oil futures rose on Monday on signs that demand in April had picked up, although gains were capped by weaker crude and soyoil prices, Indiantimes reported (21/4/2020).
The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange gained 27 ringgit, or 1.21%, to 2,262 ringgit ($517.03) per tonne at the midday break.
"(The morning session's) prices ended higher on good buying interest from both traders and dealers," said Paramalingam Supramaniam, director at Selangor-based brokerage Pelindung Bestari Sdn Bhd.
Demand is improving as buyers replenish their inventories to avoid being caught with low stocks during their lockdown to contain the new coronavirus, Paramalingam said.
Malaysian palm oil exports in April 1-20 increased between 4.5% and 7.4%, according to two cargo surveyors' data rele ..
Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
Dalian's most-active soyoil contract fell 0.4%, while its palm oil contract gained 1.17%. Soyoil prices on the Chicago Board of Trade were down 0.56%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Editor: Joko Yuwono