Palm oil prices dip on demand concerns, lower March stocks forecast caps fall

KUALA LUMPUR: Malaysian palm oil futures slipped on Monday, extending falls into a fifth session on concerns over a slump in global edible oil demand due to the coronavirus pandemic, although losses were capped by a survey showing lower March stocks.

The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange slid 13 ringgit, or 0.58 per cent, to 2,232 ringgit ($510.76) per tonne by 0243 GMT.

Palm prices fell 5.6 per cent last week as more countries, including top buyer India, closed businesses and imposed lockdowns to stem the spread of the coronavirus.

FUNDAMENTALS
Malaysia's end-March palm oil stockpile likely fell 1.9 per cent from a month earlier to 1.65 million tonnes, a Reuters survey showed. March output was forecast to rise 2 per cent from the previous month, while exports likely jumped 6 per cent.

Soyoil prices on the Chicago Board of Trade fell 0.8 per cent. Dalian was closed for trading for a holiday.

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 fall to 2,186 ringgit per tonne, as it has more or less broken a support at 2,253 ringgit, Reuters technical analyst Wang Tao said.