KUALA LUMPUR: Malaysian palm oil futures rose on Thursday to their highest closing in nearly two months, buoyed by robust demand from key buyer China and firmer crude oil prices.
The benchmark palm oil contract for April delivery on the Bursa Malaysia Derivatives Exchange gained 86 ringgit, or 2.25%, to 3,901 ringgit ($827.18) a metric ton, hitting its highest closing level since Nov. 23
Good demand from China ahead of the Lunar New Year festive period was seen, but some importers in India opted for soft oils like soya due to disparities in the world’s biggest importer of vegetable oil, said Mitesh Saiya, trading manager at Mumbai-based trading firm Kantilal Laxmichand & Co.
Oil prices rose on Thursday as OPEC forecast relatively strong growth in global oil demand over the next two years, while the market also eyed disrupted U.S. oil production amid a cold blast and tensions in the Middle East.
Palm ends higher as India extends lower duty on edible oil imports
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
Dalian’s most-active soyoil contract fell 0.08%, while its palm oil contract ticked up 0.65%. Soyoil prices on the Chicago Board of Trade were up 0.52%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
The ringgit, palm’s currency of trade, fell 0.02% against the dollar, making the commodity less expensive for buyers holding the foreign currency.
Exports of Malaysian palm oil products for Jan. 1-15 were estimated to be down 2.6% at 604,474 tons from a month earlier, independent inspection company AmSpec Agri Malaysia said on Monday.
Data from cargo surveyor Intertek Testing Services showed that exports for Jan. 1-15 rose 6.5% to 629,918 tons.
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