The company told Bursa Malaysia yesterday that revenue for the current quarter improved year-on-year (y-o-y), mainly due to higher fresh fruit bunch (FFB) production from Indonesia, apart from the higher sales of refined palm products.
KUALA LUMPUR: Palm oil for September delivery drops as much as 2.3% to RM2,253 a tonne on Bursa Malaysia Derivatives, lowest intraday level for most-active contract since July 2016.
Futures at RM2,265 by midday break in Kuala Lumpur; -9.5% year-to-date.
The market is concerned over more volatility ahead due to the threat of a trade war, as well as the rising U.S. dollar and interest rates, according to Paramalingam Supramaniam, director at Selangor-based brokerage Pelindung Bestari
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* Refined palm oil for Sept. delivery on Dalian Commodity Exchange drops as much as 4.5% to 4,630 yuan/ton, lowest intraday level for most-active contract since January 2016.
* September soybean oil -1.8% to 5,560 yuan/ton
* Supplies of crude palm oil seen rising between July and September, which will create additional problems for producers: Paramalingam.
* Still, the weaker ringgit, added with the edible oil duty increase in India, will be the catalyst to push futures markets closer to RM2,300 to RM2,280, he says.
* Soybean oil for Dec. delivery on Chicago Board of Trade -1.1% to 30.01 cents a pound; November soybeans -1.9% to US$9.14a bushel.
* Soybean oil’s premium over palm oil at US$95/ton vs average US$101 over past year, according to data compiled by Bloomberg
* Palm oil’s discount to gasoil at US$82/ton vs average premium of US$62 over past year, according to data compiled by Bloomberg.
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