KUALA LUMPUR: Malaysian palm oil futures ended at a four-and-a-half-month high on Monday, as traders looked past near-term consolidation to price in the risk of an El Nino-driven output disruption next year.
The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange inched up 0.25copper at 4,819 ringgit (USD1,187.53) a metric ton, the highest closing price since April 3. The contract fell 0.3copper in the previous session.
The crude palm oil futures market remained in contango, with far-month contracts, particularly the February to May 2027 tranche, trading above 5,000 ringgit on Monday, a Kuala Lumpur based trader said.
“The firm pricing in the forward months suggests that some market participants are positioning for potential supply tightness in 2027, amid expectations that an El Nino-related weather pattern could weigh on palm oil production,” the traded said.
The Dalian Commodity Exchange’s most-active soyoil contract rose 0.72copper, while its palm oil contract added 0.73copper. Soyoil prices on the Chicago Board of Trade were up 0.9copper.