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Palm oil firms, slow rise in May exports and lockdown hurt demand outlook

Reuters2021-06-01

KUALA LUMPUR, June 1 (Reuters) - Malaysian palm oil futures inched up on Tuesday, underpinned by concerns over supply of rival edible oils, but a fresh coronavirus lockdown in Malaysia and a slow rise in May exports hurt demand outlook.

The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange gained 11 ringgit, or 0.28%, to 3,930 ringgit ($954.58) a tonne during early trade.

FUNDAMENTALS

* Malaysia on Monday announced an additional 40 billion ringgit ($9.70 billion) stimulus package, ahead of the imposition of stricter lockdown measures this week to curb the rapid spread of COVID-19.

* The world's second largest producer starts a two-week nationwide lockdown on Tuesday. Essential manufacturing and service sector, including the palm oil supply chain, are allowed to operate but the closures of most businesses may affect local consumption of the edible oil.

* Exports of Malaysian palm oil products for May rose 1.5% from April, cargo surveyor Intertek Testing Services said on Monday.

* Dalian's most-active soyoil contract gained 1.1%, while its palm oil contract rose 0.4%. Soyoil prices on the Chicago Board of Trade were up 0.8%.

* 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 break a support at 3,888 ringgit per tonne and fall towards the next support at 3,738 ringgit, Reuters technical analyst Wang Tao said.

MARKET NEWS

* World equities were firmly on track to post a fourth straight month of gains on Monday, while the dollar struggled broadly ahead of European and U.S. data this week that will provide a clearer picture on the global economy's recovery path.

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Comment23

  • NCM
    ·2021-06-01
    Lack of interest and coverage 
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  • shawnhuat
    ·2021-06-01
    Good article. Hopefully demand comes back faster. Palm oil all the way
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    • NCM
      Hopefully
      2021-06-01
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  • Sfun
    ·2021-06-01
    reply
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    • dandan_4896
      Good morning all. ?
      2021-06-01
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    • dent
      Please like and comment
      2021-06-01
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  • LWayne
    ·2021-06-01
    Lockdown also hurt supply. How do u explain this in correlation to price?
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  • Sing2me
    ·2021-06-01
    Comment n like
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    • talk2me427
      comment and like
      2021-06-01
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  • Kaytyt
    ·2021-06-01
    Pls like and comment [Duh] 
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    View more 1 comments
  • cghtkh
    ·2021-06-01
    like and comment pls
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    • Kaytyt
      Me too
      2021-06-01
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    • QPG
      Ok
      2021-06-01
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  • RoaringPuppy
    ·2021-06-01
    Like and comment for this article 
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    • dent
      Please like and commenr
      2021-06-01
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  • Don5286
    ·2021-06-01
    $Artesian Resources(ARTNA)$is it possible to up
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  • boomer
    ·2021-06-01
    Okay
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  • Check7mate7
    ·2021-06-01
    Pump
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    • wonderzhen
      [爱你]
      2021-06-02
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    • Huathk
      Gd
      2021-06-02
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    • wonderzhen
      [开心]
      2021-06-03
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  • njkk
    ·2021-06-01
    Like and comment thanks
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    • cghtkh
      ok
      2021-06-01
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  • Liha
    ·2021-06-01
    Like n comment??
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    • Liha
      Wowww
      2021-06-02
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    • LihaReplying toLjoney
      Liked!
      2021-06-01
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    • Liha
      Hehe
      2021-06-01
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    View more 2 comments
  • Holla
    ·2021-06-01
    Like my comment pls 
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    • Bloom88
      done!
      2021-06-01
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    • Rahyenong
      Insee
      2021-06-01
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  • Titusho
    ·2021-06-01
    Damn
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  • LeeJC
    ·2021-06-01
    Expensice, comment ty!!@
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  • keyseow
    ·2021-06-01
    Wkwkw
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    • 88_TWB_88
      Comment & like thks
      2021-06-01
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  • Realbert95
    ·2021-06-01
    ?
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    • Liha
      There u go!
      2021-06-01
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    • 88_TWB_88
      Comment & like thks
      2021-06-01
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  • Ashish
    ·2021-06-01
    Like and Comment pls 
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    • atsc
      Like and done
      2021-06-01
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  • Emm… slow slow rise
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    • njkk
      Like and comment thanks
      2021-06-01
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