Palm inches up amid traders awaiting clarity on Indonesian policy

May 25, 2022: Malaysian palm oil futures ticked up on Wednesday, extending a three-session climb due to challenges over the resumption of Indonesian exports.

The benchmark palm oil contract FCPOc3 for August delivery on the Bursa Malaysia Derivatives Exchange gained 3 ringgit, or 0.05%, to 6,485 ringgit ($1,476.21) a tonne during early trade, after swinging between slight gains and losses earlier in the session.

FUNDAMENTALS

India has allowed duty-free imports of 2 million tonnes each of crude soyoil and crude sunflower oil for the current and the next fiscal year to March 2024, a government order said, as part of efforts to keep a lid on local prices. 

Uncertainties over Indonesia's policy of obligatory domestic sales at a certain price level has hampered the resumption of exports, despite Jakarta lifting a three-week ban on shipments effective Monday. 

Dalian's most-active soyoil contract DBYcv1 rose 0.8%, while its palm oil contract DCPcv1 gained 1.1%. Soyoil prices on the Chicago Board of Trade BOcv1 were up 0.2%.

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 retest a resistance at 6,560 ringgit per tonne, a break could lead to a gain to 6,713 ringgit, Reuters technical analyst Wang Tao said. TECH/C

MARKET NEWS

Asia stocks opened mostly in positive territory on Wednesday even as global growth concerns and weak U.S. economic data weighed on Wall Street overnight. 

Reuters