KUALA LUMPUR: Malaysian palm oil futures climbed 2% on Monday, extending last week's sharp gains to close at a five-month high, over supply worries and signs of demand recovery.
The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange closed up 49 ringgit, or 1.87%, to 2,663 ringgit ($625.12), its highest closing since Feb. 13.
Palm prices jumped 3.7% on Friday, adding 8.4% for the week, as heavy rains in top producers Indonesia and Malaysia fuelled worries about disruption to harvesting.
Malaysia's palm oil exports for July 1-20 fell between 3.5% and 4.6% from the previous month, cargo surveyors said.
The slight decline is a good sign that demand has held up relatively well from June levels, a Kuala Lumpur-based trader said.
Exports from the world's second-largest producer in June surged 25% on month amid the reopening of economies after coronavirus-driven lockdowns worldwide shuttered restaurants.
"Dalian was also much higher this morning and the market is expecting production to be lower in July," the trader added.
Dalian's most-active soyaoil contract rose 2.7%, while its palm oil contract was up 3.05%. Soyoil prices on the Chicago Board of Trade were up 1.24%.
Malaysia is losing up to 25% of its potential palm oil yield due to a labour shortage that is expected to worsen in the coming months, the Malaysian Palm Oil Association (MPOA) said on Monday.
Comments
Comments are closed for this article.