KUALA LUMPUR: Malaysian palm oil futures gained for a fourth session out of five on Monday, holding at a more than eight-year high on expectations of lower stockpiles and stronger crude prices. The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange closed up 46 ringgit, or 1.5%, at 3,227 ringgit ($785.54) a tonne.
Palm rose 5.6% last week to its highest since May 2012, after polls released ahead of Malaysian Palm Oil Board (MPOB) data due on Tuesday showed lower-than-usual October inventories and production, as well as rising exports.
"The unveiling of the MPOB data tomorrow will set the tone for the rest of the month," said Paramalingam Supramaniam, director at Selangor-based brokerage Pelindung Bestari. November production is also expected to fall, though demand remains a worry as European countries enter lockdown, Lingam said, adding that more demand may not appear soon as India's buying ahead of the Diwali festival comes to an end.
Palm oil prices rose $11 above rival soyaoil on the Chicago Board of Trade, its biggest premium since January. Dalian's most-active soyaoil contract fell 1.5%, while its palm oil contract slumped 2.4%.
Comments
Comments are closed for this article.