VEGOILS-Palm ends higher to clock first monthly surge in four
By Mei Mei Chu
KUALA LUMPUR, June 30 (Reuters) – Malaysian palm oil futures rose on Friday to clock their first monthly jump in four, helped by higher Indonesian export levy and a falling ringgit, but gains were limited by poor exports.
The benchmark palm oil contract FCPOc3 for September delivery on the Bursa Malaysia Derivatives Exchange closed up 28 ringgit, or 0.75%, at 3,783 ringgit ($812.15) per metric ton.
The contract logged an 18% monthly jump. However, it has lost nearly 9.4% in the first half of the year.
Exports of Malaysian palm oil products for June fell 6.9% to 1,085,920 tons from 1,166,880 tons shipped during May, cargo surveyor Intertek Testing Services said.
Fitch Ratings in a note said it expects palm oil spot prices to weaken further over the next 12 months, after falling rapidly since May 2023.
Top producer Indonesia has set its crude palm oil (CPO) reference price higher at $747.23 per metric ton for July 1-15, a trade ministry decree on Wednesday showed, making Malaysian palm oil products more competitive.
The ringgit MYR=, palm’s currency of trade, fell 0.09% against the dollar, making the commodity cheaper for buyers holding foreign currency.
Global demand for palm oil is weak and the impact of dry weather is an overall concern, said Sandeep Singh, director of The Farm Trade, a Kuala Lumpur-based consulting and trading firm.
($1 = 4.6580 ringgit)
(Reporting by Mei Mei Chu; Editing by Janane Venkatraman, Sonia Cheema and Shilpi Majumdar)
((Meifong.chu@thomsonreuters.com))
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