KUALA LUMPUR: Malaysian palm oil futures rose on Monday for a third straight session, hitting their highest closing in nearly three weeks on a weaker ringgit and higher exports.
The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange closed up 22 ringgit , or 0.59%, at 3,781 ringgit ($798.69) a metric ton, hitting its highest closing since Sept. 27.
Exports of Malaysian palm oil products for October 1-15 rose 5.6% to 606,980 tonnes from the same period in September, independent inspection company AmSpec Agri Malaysia said.
Malaysian palm oil gains further on weaker ringgit
Another cargo surveyor Intertek Testing Services said exports rose 7.3% to 623,245 metric tons.
“We are also seeing a tapering in production in Peninsular Malaysia and a double-digit drop in East Malaysia,” said Paramalingam Supramaniam, director at Selangor-based brokerage Pelindung Bestari.
Top producer Indonesia lowered its crude palm oil (CPO) reference price for the Oct. 16-31 period to $740.67 per ton from $827.37 per ton currently, a trade ministry regulation showed on Friday.
Key buyer India’s palm oil imports in September fell 26% from the previous month to 834,797 tons, the lowest in three months, as higher inventories prompted refiners to curtail purchases, a trade body said on Friday.
The ringgit, palm’s currency of trade, fell 0.19% against the dollar, making the commodity cheaper for buyers holding foreign currency.
In related oils, soybean harvest downgrades in a monthly U.S. Department of Agriculture (USDA) report last week lifted prices.
Soyoil prices on the Chicago Board of Trade were up 0.7%. Dalian’s most-active soyoil contract rose 1.2%, while its palm oil contract gained 1.8%.
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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