KUALA LUMPUR: Malaysian palm oil futures surged more than 6% on Tuesday, its biggest one-day jump in three months, on demand optimism after key market China said it would further ease border controls for inbound travellers.
The benchmark palm oil contract for March delivery on the Bursa Malaysia Derivatives Exchange jumped 248 ringgit, or 6.48%, to 4,078 ringgit ($922.62) a tonne during early trade, hitting its highest since Dec. 7.
China will stop requiring inbound travellers to go into quarantine starting from Jan. 8, the National Health Commission said on Monday in a major step towards easing curbs on its borders, which have been largely shut since 2020.
Exports of Malaysian palm oil products for Dec. 1-25 fell 0.8% to 1,262,147 tonnes from Nov. 1-25, cargo surveyor Intertek Testing Services said on Monday. Dalian’s most-active soyoil contract gained 4.1%, while its palm oil contract rose 4.9%. The Chicago Board of Trade was closed.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market. Malaysia, the world’s second-largest palm oil producer, on Friday accused the European Union (EU) of blocking market access of the edible oil with a new law that prevents the sale of commodities linked to deforestation in the 27-country bloc.
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