Palm ends up on supply worries, lower exports outlook caps gains

palm gains supply worries caps
Gulf
  • Date: 07/19/2021
  • Source: Zawya
  • Sector: Economy
  • Country: Gulf

Palm ends up on supply worries, lower exports outlook caps gains

KUALA LUMPUR- Malaysian palm oil futures closed higher on Monday, on a weaker ringgit and fears about tighter global supplies, although weaker crude prices and expectations of declining exports in the second half of July capped gains. The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange closed up 8 ringgit, or 0.19%, to 4,145 ringgit a tonne. The contract climbed for a fourth session in five. Absence of labourers due to rising COVID-19 cases is haunting Malaysian palm oil plantations, said Anilkumar Bagani, research head of Mumbai-based vegetable oils broker Sunvin Group. The Southern Peninsula Palm Oil Millers' Association has estimated production during July 1-15 fell by 3.5% from the corresponding period in June, Bagani said. Hot, dry weather in the United States is also pushing up prices of soybeans on the Chicago Board of Trade as the crop approaches its key pod-setting phase. Soyoil prices on the Chicago Board of Trade were up 0.4%. Dalian's most-active soyoil contract rose 0.3%, while its palm oil contract gained 1%. Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market. The ringgit, palm's currency of