SGS estimates Malaysia palm oil exports in Feb at 544,861 tonne

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New Delhi, Feb 15 : Malaysia’s palm oil exports during Feb 1-15 is estimated at 544,861 tonnes, up 12.6% from 484,040 tonnes exported in the same period last month, cargo surveyor SGS (Malaysia) Bhd said Tuesday.

The SGS estimate is lower than that of another cargo surveyor Intertek Agri Services released earlier in the day. Intertek estimated the country’s palm oil exports for the review period at 5,79,005 tonnes.

While the projections are above market expectations, these are not expected to bring in bullishness in an otherwise bearish market. The Bursa Malaysia Derivatives crude palm oil futures are bearish due to profit booking.

Earlier in the day, the Malaysian Palm Oil Board released export data for January—which was down 12% on month, at 9,95,345 tonnes. Palm oil stocks were up 1.8% on month, at 1.52 million tonnes, it said. This data has further pushed the bearish sentiment in the market.

At 1400 IST, the BMD benchmark April CPO futures stood at Malaysian ringgits 1,313, down 22 ringgits Malaysia’s palm oil exports in January dipped 12% on month to 9,95,345 tonnes, the Malaysian Palm Oil Board said on Tuesday. The January-end palm oil stocks were at 1.52 million tonnes, up 1.8% on month, the report added.

While Malaysia’s January palm oil output at 1.15 million tonnes is down, it is on the higher end of market expectations, traders and analysts said.

The crude palm oil futures at Bursa Malaysia derivatives plunged due to profit booking.

The benchmark April CPO futures at BMD ended at Malaysian ringgits 1,318, down 13 ringgits (1 ringgit—11.74 rupees).

“With lower exports and higher stocks, the fundamentals remain bearish. However, possible increase in demand from India may help the market in the coming week,” a Mumbai-based trader said.

Due to the bearishness of CPO futures at the BMD, India’s edible oil markets are expected to remain bearish on Tuesday.

At 1030 IST, the March soyoil contract at the National Board of Trade was at Rs 361.50 per 10 kilograms, down Rs 1.40 from Tuesday. Indore spot price of soyoil is Rs 370 per 10 kg, down Re 1.

Moreover, at the Chicago Board of Trade, soy complex futures remained mixed on Monday due to bearish fundamentals. March soyoil was down at 19.97 a pound (1 pound—0.45 kg), down 0.04 cent. March soybean however was up at $5.35 a bushel, up 10 cents.