Palm oil surges to RM4,524, joins global farm boom

Crude palm oil rallies to all-time high.

KUALA LUMPUR: Palm oil is the latest product to be swept up in the global commodity rally, deepening concerns about food inflation that’s already at the highest in seven years.

The world’s most consumed edible oil, used in everything from chocolate to lipstick and soap, saw the third-month contract surge by RM174 to RM4,524 a tonne at 12.30pm on Wednesday, in Kuala Lumpur. This was the highest level on record.

Prices of everything from soybeans to wheat, corn and vegetable oils have soared at a time when industrial commodities have been climbing too, threatening to rekindle global inflation and spur increases in interest rates.

The jump in the prices followed a rally in farm commodity prices overnight when soybeans burst through US$16 a bushel and soybean oil, a direct rival of palm, climbed to the highest level since 2008.

Farm crop prices have been rising because of weather damage to crops and booming demand from China.

“The relentless rise in the edible oil complex propelled crude palm oil futures to fresh highs, ” said Sathia Varqa, owner of Palm Oil Analytics in Singapore.

The surge in palm and soybean oil on Dalian and Chicago markets during Asia trading hours, as well as strong crude oil prices are supporting palm before the holiday, he said.

The market has now closed and only reopens on Monday in a holiday for the Eid-al-Fitr. - Bloomberg

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 46
Cxense type: free
User access status: 3

Next In Business News

US IPOs hit annual record in less than six months
Wall Street ends down as data spooks investors awaiting Fed report
Oil up nearly 2% to multi-year highs on demand expectations
TRC Synergy secures RM43mil submarine jetty maintenance job
MR DIY remains on track for growth in 2021
Jalil Rasheed sets path to BCorp revival, plans RM5bil non-core asset sale
UWC records RM24mil profit in Q3, factories running at 60% capacity during lockdown
VS Industry posts best-ever quarterly profit as revenue tops RM1bil
Luno sees RM4.11b of transactions so far this year
Tenaga, Petronas-linked stocks and plantations weigh

Stories You'll Enjoy