Palm closes over 3% higher following crucial data announcement
Malaysian palm oil futures surged over 3% to 4,384 ringgit (\$1,036.16) a ton, their highest since April 3, boosted by stronger-than-expected MPOB data and higher Dalian prices. Stocks hit a near two-year high in July, while early August exports jumped over 23%, supporting the market’s rally.
JAKARTA: Malaysian palm oil futures closed more than 3% up, its highest close since April 3, after Malaysia Palm Oil Board’s (MPOB) supply data and cargo surveyors’ export estimates were published on Monday.
The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange rose 129 ringgit, or 3.03%, to 4,384 ringgit ($1,036.16) a metric ton at the close.
“The MPOB data is stronger than expectation, coupled with Dalian jump, we expected market to trade higher,” a Kuala Lumpur-based trader said.
Malaysia’s palm oil stocks rose to their highest level in almost two years in July, increasing 4.02% over the month to2.11 million metric tons as robust production outpaced an increase in demand, data from the industry regulator showed on Monday.
Exports of Malaysian palm oil products for August 1-10 rose 23.3% according to cargo surveyor Intertek Testing Services, while according to AmSpec Agri Malaysia it rose 23.7%.
Malaysian palm oil futures climb
Dalian’s most-active soyoil contract rose 0.52%, while its palm oil contract gained 2.29%. Soyoil prices on the Chicago Board of Trade were up 1.68%.
Palm oil tracks price movements of rival edible oils, as it competes for a share of the global vegetable oils market.
Indonesia reaffirmed a plan to raise the mandatory palm oil content in its biodiesel to 50% starting from next year, but the programme known as B50 is unlikely to start in January, senior energy ministry official Eniya Listiani Dewi told reporters on Monday.
The ringgit, palm’s currency of trade, strengthened slightly 0.09% against the dollar, making the commodity slightly more expensive for buyers holding foreign currencies.
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Source : Business Recorder
