The palm oil futures on the Malaysian stock exchange were able to record a minimal increase at lunch time today. They benefited from the positive requirements of soybean oil. However, the increase is limited due to the weak Malaysian export business in May.
At lunchtime the most liquid maturity was August 18 with 0.25% plus 2.435 ringgit / ton ($ 611.50). On this maturity, a trading volume of 10,141 contracts (25 tons each) was achieved. A palm oil trader based in Kuala Lumpur believes that soybean oil is the only bullish factor and that profits may have little substance due to weak palm oil exports in May. Palm oil exports fell in May by about 1.2 million tonnes, or 8.8%, compared to April, the independent company AmSpecAgri Malaysia reported Thursday. According to a survey by the Societe General des Surveillance (SGS), exports could fall by 9.9% in May.
In Indonesia, the world's largest exporter of palm oil, palm and palm kernel oil exports fell by 13.6% in April. This is shown by data from the association of palm oil-producing companies.
The stocks of both countries are likely to increase significantly due to high production and weak exports.
On the CBoT, the July maturity date for soybean oil is now trading at 0.58%, while the December maturity of soybean oil on the Dalian Commodity Exchange was up 0.07%.
