JAKARTA: Malaysian palm oil futures extended gains to a second session on Wednesday, as lower-than-expected stocks and strength in related oils helped lift prices.
The benchmark palm oil contract for February delivery on the Bursa Malaysia Derivatives Exchange gained 1.54% to 3,946 ringgit ($894.78) per tonne by midday break, after gaining 4% on Tuesday.
Palm rose as a “continuation of bargain buying from yesterday reinforced by bullish MPOB data,” said Sathia Varqa, co-founder of Singapore-based Palm Oil Analytics.
Malaysia’s palm oil stocks at the end of November fell for the first time in six months, as production slumped amid a slight pick-up in exports, data from the Malaysia Palm Oil Board (MPOB) showed on Tuesday. The stock fell 4.98% from October, deeper than the 0.47% decline expected in a Reuters poll. Also helping palm oil up were the higher related oils.
Dalian’s most active soyoil contract were traded 1.20% higher, while its palm oil contract climbed 1.52%. Soyoil prices on the Chicago Board of Trade fell 0.78% after posting a 3.09% gain overnight.
Palm oil jumps more than 4pc on lower stocks
Palm oil is affected by price movements in related oils, as they compete for a share in the global vegetable oils market.
Exports of Malaysian palm oil products for Dec. 1-10 rose 15.7% to 473,086 tonnes compared to shipments in Nov. 1-10, cargo surveyor Societe Generale de Surveillance said on Tuesday.
Palm oil may test a resistance at 4,029 ringgit a tonne, a break above which could lead to a gain to 4,132 ringgit, Reuters technical analyst Wang Tao said.
Meanwhile, crude palm oil output by rival Indonesia is seen at 48.1 million tonnes in 2023, up from an estimated 46.5 million tonnes this year, according to an industry group forecast.
Comments
Comments are closed.