KUALA LUMPUR: Malaysian palm oil futures on Wednesday logged gains for the second straight month as they ended higher on robust exports from the world’s second largest producer.
The benchmark palm oil contract for February delivery on the Bursa Malaysia Derivatives Exchange closed up 19 ringgit, or 0.45%, to 4,238 ringgit ($953.86) a tonne, its highest closing since Nov. 11.
For the month, palm has risen 4.5%.
Exports from Malaysia in November rose between 1.7% and 5.6% from the month before, according to data from cargo surveyors Intertek Testing Services and Amspec Agri.
Malaysia has maintained its December export tax for crude palm oil at 8% and raised its reference price, a circular on the Malaysian Palm Oil Board website showed.
Production and export trends in Malaysia are supportive, although the market is limited by a stronger ringgit and profit-taking, a Kuala Lumpur-based trader said.
The ringgit, palm’s currency of trade, rose 1.38% against the dollar, making the commodity more expensive for buyers holding other currency.
Dalian’s most active soyoil contract rose 2.1%, while its palm oil contract gained 2%. Soyoil prices on the Chicago Board of Trade were up 0.6%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Plantation giant FGV Holdings forecast crude palm oil prices to average around 4,000 ringgit ($894.65) per tonne in the fourth quarter of 2022.
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