Palm hits 3-1/2-month high on stronger overnight soyoil

Madiha Shakeel August 9, 2019

KUALA LUMPUR: Malaysian palm oil futures extended gains on Friday and hit their highest in nearly three-and-a-half months, tracking overnight gains in U.S. soyoil on the Chicago Board of Trade (CBOT).

The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange was up 0.9% at 2,155 ringgit ($514.93) per tonne at the midday break, after rising as much as 1.2% to 2,160 ringgit, their strongest since April 25, earlier in the session.

Palm oil was headed for a fifth straight session of gains, and has added 4.5% so far this week.

“The sharp rise in soybean oil futures overnight may spill over and extend gains in palm oil,” said a Kuala Lumpur-based futures trader.

U.S. soyoil futures on the CBOT jumped 3.6% on Thursday, but were down 0.3% as of 0503 GMT on Friday.

Chicago corn and soybean futures were little changed on Friday as traders squared positions ahead of a U.S. government report next week, which is expected to clarify how many acres have been planted, with both the markets poised for weekly gains.

In other related oils, the September soyoil contract on the Dalian exchange rose 2.5% and the Dalian September palm oil contract gained 1.7%.

Copyright Reuters, 2019

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