Palm surges in Asia on positive exports, lower production
March 27, 2023
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March 27, 2023 (MLN): Palm oil prices rose in the Asia session in response to soybean oil's gains on the Chicago Board of Trade last Friday.
Low York Hong, head of futures broking at AmInvestment Bank, noted that the two oils often trade in tandem as they are used in similar products.
The positive trend was supported by the recent data from cargo surveyors ITS and Amspec, which both reported higher palm-oil exports for March 1-25. However, the Southern Peninsula Palm Oil Millers Association reported lower CPO production for March 1-20.
According to Low, CPO futures are expected to find support at MYR3,500 and below, given the positive export data and lower production. He also pegged resistance for CPO futures at MYR3,613 and support at MYR3,482. The Bursa Malaysia Derivatives contract for June delivery increased by MYR38 to reach MYR3,550 a ton.