FCPO Related News (Tues, Apr 30)

[Malaysia April Palm Oil Exports 1.31 Mln Tons, Down 4.3% – Intertek ]

SINGAPORE, April 29 (Reuters) - Malaysian palm oil futures lost ground on Monday after four straight sessions of gains, although traders remained cautious ahead of export data that could provide further trading cues. The edible oil posted its first weekly gain out of five last week, supported by rising Malaysian exports for the first 25 days of the month thanks to stronger demand from India, Europe and the United States.

The gains prompted some profit-taking as the market lacked fresh stimulus, with the Chinese soybean oil market closed for holiday and ahead of Malaysia's palm export data for the full month due on Tuesday. "The market is a bit quiet today as the Dalian markets were closed. There's also exports data due on Tuesday so traders are waiting for further direction on stocks," said a trader with a foreign commodities brokerage in Kuala Lumpur.

The benchmark July contract on the Bursa Malaysia Derivatives Exchange fell 1.7 percent to close at 2,277 ringgit ($751) per tonne. Prices touched 2,334 ringgit on Friday, the highest since April 12. Total traded volumes were thin at 26,636 lots of 25 tonnes each, compared to the average 35,000 lots. Investors are pinning their hopes on healthy exports and lacklustre production to help cut stockpiles in Malaysia, which eased from February's 2.43 million tonnes to 2.17 million tonnes last month. Lower palm oil inventory level could provide support for palm oil prices, which have lost 6.6 percent so far this year. Leading analyst Dorab Mistry forecast in March that prices could rise to 2,400 to 2,700 ringgit by the end of May, as weaker production speeds a fall in stockpiles.

In other markets, Brent crude oil slipped to $103 per barrel on Monday as an uncertain outlook for growth in the world's two largest oil consumers, the United States and China, encouraged commodities markets to consolidate. In vegetable oil markets, U.S. soyoil for July delivery fell 0.6 percent in late Asian trading. The Dalian Commodities Exchange is closed for Labour Day and will only resume trading on Thursday.

Today’s Support and Resistance for benchmark July contract is located around 2,260 and 2,326 respectively.