Tuesday, 16 August 2016
KUALA LUMPUR: Malaysian palm oil futures made their biggest gains in nearly a year, charting a second positive session on Monday evening, tracking firmer competing vegetable oils and supported by strong export data.
Benchmark palm oil futures for October on the Bursa Malaysia Derivatives Exchange surged 3.8 percent to 2,622 ringgit ($655) per tonne at the end of the trading day. Palm earlier reached a 10-week top of 2,633 ringgit, its highest since June 7. Palm’s rise on Monday was its strongest since Sept. 25.
Traded volumes stood at 65,845 lots of 25 tonnes each in the evening, higher than the 2015 average of 44,600.
“Overseas commodities are firm,” said a futures trader from Kuala Lumpur, referring to palm’s rival oils such as soybean oil on the Chicago Board of Trade and the Dalian Commodity Exchange’s refined, bleached and deodorised (RBD) palm olein.
Another trader said the market was up on strong export figures and tracking Dalian’s RBD palm olien.
Palm oil’s price direction is typically influenced by competing oilseeds and grains like soy, as they compete for a share in the global vegetable oils market.
U.S. soybean futures recovered losses on Monday on better demand from top market China.
The Chicago Board of Trade soybean oil December contract rose 1.8 percent, while the January soybean oil contract on the Dalian Commodity Exchange surged 2.8 percent.
Dalian’s January contract for RBD palm olein was up 4 percent.
Stronger exports to China and India also lent support to the market, as data from cargo surveyors Intertek Testing Services and Societe Generale de Surveillance showed a 30-31 percent rise in Malaysian shipments in the first half of August versus the same time last month.
China and India are the world’s largest consumer countries of palm oil.
Source by: The Star Online