KUALA LUMPUR: Malaysian palm oil futures climbed for a second day to a record high of 5,220 ringgit a tonne on Thursday, lifted by a rally of global edible oils and tight supply sentiment.
The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange gained 94 ringgit, or 1.85%, to 5,165 ringgit ($1,242.48) a tonne by the midday break.
The spot contract for November delivery rose to an all-time high of 5,393 ringgit.
Crude palm oil futures (CPO) surged higher on renewed concerns over Indonesia palm oil production losses, covering in cash markets and persistently bullish energy prices, said Anilkumar Bagani, research head of Mumbai-based vegetable oils broker Sunvin Group.
"The depressing production outlook and reduction in import duties at key destination markets India and Pakistan has given new ray of hope for palm oil prices to sustain the rally," he added.
Exports of Malaysian palm oil products for Oct. 1-20 fell 14.7% from the same week in September, an improvement from a 18% decline seen during Oct. 1-15, according to data from cargo surveyor Intertek Testing Services.
Dalian's most-active soyoil contract rose 3%, while its palm oil contract 3.4%. Soyoil prices on the Chicago Board of Trade were up 0.1%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Oil prices were mixed on Thursday as some investors scooped up profits from the recent rally while solid demand in the United States underpinned market sentiment.
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
Palm oil may rise towards a 5,187-5,274 ringgit range, as it has broken a resistance zone of 5,032-5,048 ringgit per tonne, Reuters technical analyst Wang Tao said.
Comments
Comments are closed.