Malaysian palm oil price reverses losses and gains on improving export hopes

17-Jul-2017 Intellasia | Thestar | 6:00 AM Print This Post

Malaysian palm oil futures snapped three sessions of losses on Friday, rising off a one-week low on expectations that data from cargo surveyors to be released on Saturday and Monday will show higher exports.

Earlier in the session, the market earlier fell to an intraday low of 2,532 ringgit as forecasts of rising palm oil production weighed on prices, said traders.

The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange was up 0.4 percent at 2,568 ringgit ($598.46) at the close, giving an increase of 0.5 percent for the week.

Traded volumes stood at 55,116 lots of 25 tonnes on Friday.

“Rumours on improving exports lifted the market in the evening,” said a futures trader based in Kuala Lumpur, referring to data from cargo surveyors detailing shipments from Malaysia for the July 1-15 period.

Data from Intertek Testing Services and Societe generale de Surveillance is scheduled for release on Saturday and Monday respectively.

Exports for the first half of July were generally expected to be higher than the corresponding period of June. Traders said, however, that market gains may not be sustained as production is seen increasing in July.

Palm oil output in Malaysia declined in June as workers went on leave during Ramadan and Eid-al-Fitr. Production is expected to recover from July onwards in line with the

seasonal trend.

In related oils, the December soybean oil contract on the Chicago Board of Trade rose 0.3 percent while the September soybean oil on the Dalian Commodity Exchange fell by up to 1 percent.

The September palm olein dropped as much as 1.3 percent.


Category: Malaysia

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