Palm oil ends higher to clock first monthly surge in four
KUALA LUMPUR: 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 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.
Another cargo surveyor, AmSpec Agri Malaysia, said exports rose 0.6%.
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.
“Prices are likely to be pressured by steadily rising crude palm oil output and robust near-term market expectations for supply of competing vegetable oils,” it said.
Fitch said it lowered its 2023 benchmark price assumption to $800 a metric tonne from $850 to reflect the faster-than-expected price drop in the second quarter.
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, palm’s currency of trade, fell 0.09% against the dollar, making the commodity cheaper for buyers holding foreign currency.
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