Palm slips as exports slump, lower inventories limit losses

January 11, 2022: Malaysian palm oil futures eased on Tuesday as cargo surveyor data showing a tumble in Jan. 1-10 exports outweighed support from a sharp decline in inventories.

The benchmark palm oil contract for March delivery on the Bursa Malaysia Derivatives Exchange slid 22 ringgit, or 0.44%, to 5,007 ringgit in early trade.

FUNDAMENTALS

* The market is supported by tight supplies amid heavy rains and flooding in Peninsular Malaysia, with a miller's association pegging production for the first five days of January lower by 45.75% month-on-month, but the upside is capped by weaker demand amid persistently high palm prices, Refinitiv Agriculture Research said in a note on Monday.

* Malaysia's palm oil stocks at the end of December fell steeper than expected, down 12.9% from the month before, as production nosedived to its lowest in nine months, Malaysian Palm Oil Board data showed on Monday, further tightening inventories for 2022.

* Exports for Jan. 1-10 fell 41.6% to 334,750 tonnes from the same period in December, cargo surveyor Intertek Testing Services said on Monday.

* Dalian's most-active soyoil contract gained 0.3%, while its palm oil contract rose 0.1%. Soyoil prices on the Chicago Board of Trade were up 0.4%, after declining 1.3% overnight.

* 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 test a support at 4,927 ringgit per tonne, a break below which could open the way towards 4,806 ringgit, Reuters technical analyst Wang Tao said. MARKET NEWS

 

Reuters

Posted on: 2022-01-11T09:17:09+05:00

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