JAKARTA: Malaysian palm oil futures rose for a third straight session on Thursday, as output outlook dimmed after Indonesia stopped a group of migrant workers from entering Malaysian plantations facing severe labour crunch.
The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange gained 0.85%, to 6,410 ringgit ($1,459.80) a tonne in early trade.
Excepting Indonesia, 2pc ACDs removed on import of palm oil
Fundamentals
Indonesia cancelled a plan to send its citizens to work in palm oil plantations in neighbouring Malaysia, which is facing a labour shortage, its envoy to Kuala Lumpur said on Tuesday.
State agency the Malaysian Palm Oil Council (MPOC) lowered its production outlook on Wednesday for the world’s second-largest producer and pegged prices to remain above 6,000 ringgit ($1,367.37) a tonne this year.
India has slashed the base import prices of crude and refined palm oil, while raising the price of crude soyoil, the government said in a statement late on Tuesday.
Dalian’s most-active soyoil contract was up 0.14%, while its palm oil contract rose 1.03%. Soyoil prices on the Chicago Board of Trade were down 0.16%.
Palm oil looks neutral in a range of 6,220-6,423 ringgit per tonne, and an escape could suggest a direction, Reuters technical analyst Wang Tao said.