Saturday, 12 March 2016 | MYT 7:05 AM
Malaysian palm oil price jumps to new high in late trade on low supply concerns
The palm oil contract for May delivery on the Bursa Malaysia Derivatives Exchange surged 2.4 percent to 2,608 ringgit ($638) per tonne at the end of the trading day. It earlier reached a new three-week and intraday high of 2,612 ringgit. Traded volume stood at 48,005 lots of 25 tonnes each on Friday.
KUALA LUMPUR: Malaysian palm oil futures jumped in Asian evening trade on Friday, rebounding from losses a day ago, as low supply concerns and bullish price sentiments from an industry conference fueled the market rally.
Experts at an industry conference in Kuala Lumpur on Wednesday had forecast palm to trade at 2,700-3,000 ringgit per tonne by June as a crop-damaging El Nino is expected to impact yields and lower annual output growth.
The palm oil contract for May delivery on the Bursa Malaysia Derivatives Exchange surged 2.4 percent to 2,608 ringgit ($638) per tonne at the end of the trading day. It earlier reached a new three-week and intraday high of 2,612 ringgit.
Traded volume stood at 48,005 lots of 25 tonnes each on
"It's a supply driven rally, aided and abetted by speculative buying and massive short covering," said a trader from Kuala Lumpur.
An El Nino weather event brings heavy rains to South America
but scorching heat across Southeast Asia, reducing palm's fresh
fruit yields and lowering production. Analysts at the Kuala
Lumpur conference forecast that global production for palm oil
would fall by 2-3 million tonnes.
Government data from Malaysia, the world's second largest
producer of palm, showed that February output fell to its lowest
since 2007 at 1.04 million tonnes, a 7.7 percent decline from a
Palm oil may test a resistance at 2,595 ringgit per tonne, a
break above which could lead to a gain to the next resistance at
2,614 ringgit, said Wang Tao, a Reuters market analyst for
commodities and energy technicals.
In competing vegetable oil markets, the May soybean oil
contract on the Dalian Commodity Exchange rose 1.2
Palm, soy and crude oil prices at 1051 GMT:
Contract Month Last Change Low High Volume
MY PALM OIL 6-Mar 2549 60 2505 2549 92
MY PALM OIL 6-Apr 2599 67 2548 2599 1898
MY PALM OIL 6-May 2607 62 2561 2612 24693
CHINA PALM OLEIN 6-May 5118 -14 5048 5156 660144
CHINA SOYOIL 6-May 5788 70 5674 5828 390094
CBOT SOY OIL 6-May 32.17 7.7 31.6 32.21 12879
INDIA PALM OIL 6-Mar 505.6 7.7 499.5 507.4 2414
INDIA SOYOIL 6-Mar 614.65 6.7 610 615 11140
NYMEX CRUDE 6-Apr 38.77 0.93 37.92 38.96 61087
Palm oil prices in Malaysian ringgit per tonne
CBOT soy oil in U.S. cents per pound
Dalian soy oil and RBD palm olein in Chinese yuan per tonne
India soy oil in Indian rupee per 10 kg
Crude in U.S. dollars per barrel
($1 = 4.0860 ringgit)
($1 = 67.1300 Indian rupees)
($1 = 6.4989 Chinese yuan)