* Malaysia’s June 1-10 exports fall 14%
* MPOB May supply and demand data below expectations
* May stocks rose only 1.49% to 1.57 mln T -MPOB
KUALA LUMPUR, June 10 (Reuters) – Malaysian palm oil futures
firmed on Thursday to snap a three-day loss with higher Chicago
soyoil futures offering support, though concerns over weaker
exports capped gains.
The benchmark palm oil contract for August delivery
on the Bursa Malaysia Derivatives Exchange gained 23 ringgit, or
0.59%, to 3,894 ringgit ($945.83) a tonne by the midday break.
In the previous session, palm dropped more than 4% to touch
a five-week low.
Malaysia’s exports during June 1-10 declined 14.3% to
402,520 tonnes from the same period in May, said cargo surveyor
Malaysia’s palm oil stocks at the end of May rose smaller
than expected, up 1.49% from the previous month, to 1.57 million
tonnes, according to Malaysian Palm Oil Board (MPOB) data
released during the midday break.
May production and exports were also below market estimates.
Production ticked up 2.84% from April to 1.57 million tonnes,
while palm oil exports fell 6.01% to 1.27 million tonnes,
according to MPOB.
MPOB data is supportive and the market will now shift its
focus to June export performance and production outlook, said
Anilkumar Bagani, research head of Mumbai-based vegetable oils
broker Sunvin Group.
« If no improvement seen in the exports and production keeps
rising, we may see the recovery in palm oil prices to be
short-lived, » Bagani said.
Dalian’s most-active soyoil contract fell 0.4%,
while its palm oil contract slipped 1.4%. Soyoil prices
on the Chicago Board of Trade were up 1%.
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 test a support at 3,738 ringgit per tonne, a
break below could open the way towards the range of 3,495
ringgit to 3,635 ringgit, Reuters technical analyst Wang Tao
($1 = 4.1170 ringgit)
(Reporting by Mei Mei Chu; Editing by Ramakrishnan M.)