KUALA LUMPUR: Malaysian palm oil futures surged 3% to touch a four-month high on Tuesday on expectations of improving exports ahead of cargo surveyor data due Wednesday.
Export pace from Malaysia during July 1-15 is expected to improve with the market pegging a 9-10% monthly fall, according to traders. This compares with a 17-18% monthly decline in July 1-10 exports.
The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange rose 71 ringgit, or 2.92%, to 2,500 ringgit ($585.48) a tonne, up for the third day. The contract climbed to an intraday high of 3.09% and touched its highest level since March 5.
An initial survey by the brokerage shows a 7%-13% drop in July production from the previous month, he said.
Production in June saw a higher-than-expected jump due to favourable weather conditions and delayed harvesting after coronavirus-fueled restrictions were eased, according to analysts and traders.
Dalian's most-active soyaoil contract rose 1.38%, while its palm oil contract was up 3.96%. Soyaoil prices on the Chicago Board of Trade also advanced 0.66%.
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