Palm oil gains as strong early June shipments stoke export outlook

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

AFP
Palm oil fell 1.6% in the previous session on anticipation of a jump in output this month as plantations enter a high production cycle.
KUALA LUMPUR: Malaysian palm oil futures rose on Thursday, recovering from a more than 1% fall in the previous session, boosted by a surge in exports in the first 10 days of June as more countries eased coronavirus-induced restrictions.

The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange gained 15 ringgit, or 0.64%, to 2,364 ringgit ($557.81) a tonne by 0238 GMT.

Palm oil fell 1.6% in the previous session on anticipation of a jump in output this month as plantations enter a high production cycle.


FUNDAMENTALS
Malaysia palm oil exports in June 1-10 jumped between 69% and 64% from the previous month, cargo surveyors said on Wednesday.

Traders are expecting June exports to remain robust with the world's largest edible oil buyer India resuming purchases from Malaysia.

Malaysia's palm stockpile was down 0.5% at 2.03 million tonnes at the end of May from the previous month, as production fell marginally while exports surged, according to the Malaysian Palm Oil Board data released on Wednesday.
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Dalian's most-active soyoil contract fell 0.45%, while its palm oil contract slipped 0.36%. Soyoil prices on the Chicago Board of Trade were up 0.18%.

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

Palm oil may stabilize around a support at 2,342 ringgit per tonne, and bounce towards 2,394 ringgit, as suggested by its wave pattern and a retracement analysis, Reuters technical analyst Wang Tao said.

MARKET NEWS
Asian shares eased on Thursday while bonds rallied after a downbeat economic outlook from the U.S. Federal Reserve stoked speculation it would have to add to already historic levels of stimulus to safeguard recovery.
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