Malaysian palm oil futures extend gains on weather concerns
Malaysian palm oil futures rose for a second day on weather-related production concerns and stronger Dalian edible oils. The February contract closed 1.62% higher at 4,089 ringgit. Flood threats in Malaysia and Thailand kept markets cautious, while gains in Chicago soyoil and Dalian palm olein supported short-covering and added upward momentum.
JAKARTA: Malaysian palm oil futures rose for a second straight session on Thursday, supported by production worries due to adverse weather and tracking strength in rival Dalian edible oils.
The benchmark palm oil contract for February delivery on the Bursa Malaysia Derivatives Exchange gained 65 ringgit, or 1.62percent, to 4,089 ringgit (USD983.29) a metric ton at closing.
“Weather vagaries, with announcements on the impending floods, are keeping the market nervous,” said Paramalingam Supramaniam, director at Selangor-based brokerage Pelindung Bestari. Severe flooding brought on by heavy rain has killed two in Malaysia and at least 33 in neighbouring Thailand over the last week, with tens of thousands now in evacuation centers in both countries, some after being trapped for days.
The contract also rose on short-covering following gains in overnight Chicago soyoil futures and Dalian palm olein futures in Asian hours, said Anilkumar Bagani, commodity research head at Mumbai-based brokerage Sunvin Group.
Dalian’s most-active soyoil contract gained 1.31percent, while its palm oil contract rose 1.74 percent.
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Source : Business Recorder
