Palmetto prices end higher in Dalian and rising inventories

Malaysian palm oils futures rose on Thursday, wiping out the losses of the previous session. They were supported by strong rival oils in Dalian, and data from Malaysian Palm Oil Board, which showed an increase in March inventories.

The benchmark June palmoil contract traded on the Bursa Derivatives Exchange in Malaysia gained 53 ringgit or 1.28% to 4,201 Ringgit ($940.66) per metric ton.

A Kuala Lumpur trader stated earlier that "the futures react to the rival oil's rise", adding that the export data from MPOB will give clues on the way forward.

Dalian's palm oil contract, which is the most active contract, gained 1.37% while soyoil prices increased by 0.84%. Prices of soyoil on the Chicago Board of Trade dropped by 0.24%.

As palm oil competes to gain a share in the global vegetable oils markets, it tracks the price changes of competing edible oils. Malaysian palm oil stocks rose for the first time in six months during March as imports and production both recovered, countering a strong demand over the festive season. This was according to data released by industry regulators on Thursday. Stocks at the end March were up 3.52% compared to the previous month, reaching 1.56 million tons. AmSpec Agri Malaysia, an independent inspection company, reported that exports of Malaysian products containing palm oil for the period April 1 to 10 increased by 52.8%, to 301.113 metric tonnes. According to Intertek Testing Services, cargo surveyor, it increased by 29.3%, to 323,160 tons. Oil prices fell nearly 3% Thursday, as fears of an intensifying U.S. China trade war and a possible recession overshadowed the relief that President Donald Trump had announced a 90-day suspension on tariffs.

Palm oil is less appealing as a biodiesel feedstock due to the weaker crude oil futures.

Palm's trade currency, the ringgit, has strengthened by 0.6% against U.S. dollars, increasing the price of the commodity for buyers with foreign currencies.

text_section_type="notes">For a table on Malaysian physical palm oil prices, including refined oil, Terminal users can double click on or type. Please enter the freight rate from Peninsula Malaysia/Sumatra, and then press Enter. Or, double-click between the brackets to view rates for China, India and Pakistan. Double-clicking on the codes between the brackets will allow terminal users to see the cash and futures prices of edible oils. To move to the next page, press F12. To go back, hit F11. Vegetable oils Malaysian Palm Oil Exports CBOT Soybean Futures CBOT Soyoil Futures Indian Solvent Dalian Commodity Exchange

Dalian soyoil Futures Dalian refined Palm Oil Futures Zhengzhou Rapeseed Oil European edible oil Prices/Trades (Reporting and Editing by Eileen Soreng, Sumana Niandy).

(source: Reuters)