BEIJING: Malaysian palm oil futures ended higher on Wednesday on forecasts of lower production in the world’s second-largest producer, although estimates of shrinking June exports kept the contract near six-week lows.
The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange closed up 18 ringgit, or 0.47%, to 3,877 ringgit ($823.14) a metric ton, but hovered near its lowest since May 17.
It had earlier declined as much as 0.75%. The Malaysian Palm Oil Association forecast production during June 1-20 to decline 6.3% from a year ago, traders and analysts said.
Exports from Malaysia are also weak, with cargo surveyors Intertek Testing Services and AmSpec Agri Malaysia on Tuesday estimating shipments during June 1-25 likely fell between 16.1% and 16.9% from the same period in May.
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