Malaysian palm oil futures rose to their highest in two weeks on Monday in a fourth consecutive session of gains, tracking other edible oils and on forecasts of lower end-stocks in Indonesia. The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange gained 0.2 percent to 2,488 ringgit ($581.85) a tonne at the close of trade. It earlier hit 2,515 ringgit, its highest since June 5.
Traded volumes stood at 50,055 lots of 25 tonnes. "Crude palm oil is up this morning on the external market," said a Kuala Lumpur-based trader, referring to soyaoil on the Chicago Board of Trade and China's Dalian Commodity Exchange.
Forecasts of lower inventories in Indonesia, the world's top producer of palm oil, also supported the market, another added. "Stocks are low so the market will be supported," he said. Indonesia's palm oil stockpiles likely fell in May as exports rose due to higher consumer demand ahead of the Islamic holy month of Ramazan, down to 1.09 million tonnes from 1.31 million tonnes in April, a Reuters survey showed.
The market, however, shed some gains in the second half of Monday's trading session, as traders sold on forecasts of slowing exports. Demand for the oil typically slows down before Ramazan ends, as buyers stock up the month before. Cargo surveyor data from Intertek Testing Services and Societe Generale de Surveillance for the June 1-20 period is scheduled for release on Tuesday after 0300 GMT. Palm oil prices are also impacted by the movements of related edible oils such as soyaoil, as they compete for a share in the global vegetable oils market. Soyabean oil on the Chicago Board of Trade rose 0.4 percent, while the September soyabean oil on the Dalian Commodity Exchange was up 0.5 percent In other related oils, the September palm olein contract surged 1.4 percent.
Comments
Comments are closed for this article.