Palm jumps nearly 2pc on likely muted production, higher exports
- The benchmark palm oil contract for March delivery on the Bursa Malaysia Derivatives Exchange climbed for a third consecutive session, closing 65 ringgit higher at 3,443 ringgit ($852.76).
SINGAPORE: Malaysian palm oil futures rose 1.9pc on Friday as traders expect another month of subdued production and rising exports.
The benchmark palm oil contract for March delivery on the Bursa Malaysia Derivatives Exchange climbed for a third consecutive session, closing 65 ringgit higher at 3,443 ringgit ($852.76).
"The market is anticipating negative growth in December production and improving exports," a Kuala Lumpur-based trader told Reuters. "We are also expecting January export tax to remain at zero."
Exports of Malaysian palm oil products during Dec. 1 to 15 rose 9.5pc on-month to 725,380 tonnes, cargo surveyor Societe Generale de Surveillance said on Tuesday.
Meanwhile, Malaysia's palm oil end-stocks in November fell to their lowest in more than three years as production slumped and exports fell more than expected, data released by the Malaysian Palm Oil Board last week showed.
Dalian's most-active soyoil contract rose 2pc, while its palm oil contract gained 1.6pc. Soyoil prices on the Chicago Board of Trade were last up 0.2pc, after rising more than 1pc overnight on South American crop concerns.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
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