JAKARTA • Palm oil advanced to the strongest level since March 25, buoyed by robust shipments from second-biggest grower Malaysia before the Ramadhan festival, and a rally in soybean oil futures.
Exports advanced about 11% from a month earlier to 184,070 tonnes in the first five days of April, according to data from Intertek Testing Services. That’s after shipments from Malaysia probably jumped about 29% in March, a Bloomberg survey of analysts, traders and plantation executives showed.
The market will be running on bullish sentiment this week as expanding exports could reduce stockpiles in Malaysia, said Christopher Andre Benas, an analyst at RHB Sekuritas in Jakarta.
Palm oil reserves in Malaysia increased about 2.3% from Febru- ary to 1.33 million tonnes last month, according to the survey. The inventories are the largest since November, but still stand 23% below the level a year earlier.
The market is also getting support from stronger soybean oil, said Anilkumar Bagani, research head of Mumbai-based Sunvin Group. But higher prices could damp the tropical oil’s appeal. “Only India is buying. Other destinations, including China, are quiet due to poor import margins,” Bagani said.
Traders are waiting for the Malaysian Palm Oil Association’s production estimates, before the Malaysian Palm Oil Board’s report on exports, reserves and output next week, he said. — Bloomberg