Malaysian palm oil price up on overnight soyoil strength, stronger exports

Kenanga Research, in its latest report, said planters with high plantations exposure in Peninsular Malaysia such as Sime Darby Bhd, IOI Corp Bhd, Kuala Lumpur Kepong Bhd (KLK), Felda Global Ventures Holdings Bhd (FGV) and United Malacca Bhd could see higher-than-average production growth trends

KUALA LUMPUR: Malaysian palm oil futures rose for the first time in five sessions on Wednesday, supported by rising export demand and strength in soyoil on the Chicago Board of Trade.

    The benchmark palm oil contract for December delivery  on the Bursa Malaysia Derivatives Exchange rose 0.1 percent to 2,770 ringgit a tonne at the end of the trading day.

    The rise followed four straight declines as palm tracked weakness in related edible oils and was also pulled lower by bearish price outlooks at an industry conference last week.

    Traded volumes stood at 64,331 lots of 25 tonnes each on Wednesday evening.

    "The market is higher on soyoil closing (higher) last night," said one Kuala Lumpur-based futures trader, referring to CBOT soyoil. 

    He added that strong export data from cargo surveyors was also supporting the market, but the gains are likely to be short-lived because expectations of stronger exports are already priced in.

    "The market needs to break above 2,800 ringgit to continue its bullish rally. Otherwise it will come lower to 2,740-2,750 ringgit," the trader said. 

    Palm oil shipments from Malaysia, the world's second-largest producer behind Indonesia, in the first 20 days of September rose 25.4 percent from the same period the previous month, data from Intertek Testing Services showed on Wednesday.

    Another cargo surveyor, Societe Generale de Surveillance reported on Wednesday evening a 26.8 percent rise in shipments for the same period.

    Demand for the tropical oil is seen rising throughout September as key buyers China and India stock up ahead of the mid-autumn festival and Diwali respectively, which lead to higher usage of palm  oil.

   Palm oil prices are also affected by movements in other edible oils including soy. 

    The October soybean oil contract on the Chicago Board of Trade posted its first gain in a week on Tuesday but was last down 0.1 percent on Wednesday. 

    The January soybean oil contract on the Dalian Commodity Exchange dipped by 0.3 percent, while the January palm olein contract fell 0.6 percent. - Reuters

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 0
Subscribe now to our Premium Plan for an ad-free and unlimited reading experience!

palm oil , cpo , markets , futures , derivatives , Bursa , price , stocks ,


Next In Business News

Economy on stable footing
Hibiscus eyes aggressive growth
Cost of funds rising?
An end to monopolies
Acfin starts work on focus areas mandated by PM
Favourable prospects
Elon Musk wants to pause AI? It’s too late
Crypto gets red carpet in Paris and red flags
Swiss bankers forgot they’re meant to be boring
CEOs build resilience amid challenges

Others Also Read