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. 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 US 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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