KUALA LUMPUR/JAKARTA: Malaysian palm oil futures closed at a more than one-week high on Thursday, rising for a fourth consecutive session, underpinned by firm rival edible oils and expectations of lower production.
The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange rose 84 ringgit, or 2.27%, to 3,791 ringgit ($857.69).
“With both Dalian and Chicago soyoil trading firm today, Bursa Malaysia palm oil takes the opportunity to buy in anticipation of tomorrow export figures and to close the gap between futures and cash prices,” a Kuala Lumpur-based trader said, adding that supply concern following flood disruption also supporting Malaysian palm oil prices.
Malaysian palm oil inventory estimated to shrank to below 2 million tonnes by the end of March, as world’s biggest palm oil exporter Indonesia raised domestic market obligation and restricted export, and global palm oil demand shifted to Malaysia, while production remained uncertain, said Anilkumar Bagani, commodity research head of Sunvin Group.
Palm climbs for third day to one-week peak on output worries
Cargo surveyors are scheduled to release March exports data on Friday, while a millers’ association has pegged a 22.9% slump in March 1-25 output, analysts said.
Dalian’s most-active soyoil contract rose 1.34%, while its palm oil contract climbed 1.33%. Soyoil prices on the Chicago Board of Trade were up 0.02%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.