Palm oil prices up 1.6% in Malaysian market
Kuala Lumpur – Online – December 10, 2019 – Palm oil prices in the Malaysian market have increased by 1.6%, which is likely to reduce supply.
Palm oil deals jumped 1.6% to 2904 rings ($ 696.40) per tonne at the Bursa Derivatives Exchange, the highest level since February 16, 2017.
The market fell in early trading, weighed down by the weakness of the Chicago Board of Trade (CBOT) overnight soybean oil and strong ringgit, which usually made cooking oil more expensive for foreign currency holders.
The benchmark palm oil contract for delivery on the Bursa Malaysia Derivatives Exchange in November rose 1% to 2,203 ringgit per ton, the highest daily increase since August 22.
Earlier rose 1.6% to 2,216 ringgit, but fell 1.4% this week, the second consecutive week of decline.
A Kuala Lumpur-based trader said that “the market is mainly rising in polls.” A Reuters poll and industry analysts’ forecasts for Malaysia’s August palm oil data.
The Malaysian industrial regulator, the Palm Oil Board of Malaysia, plans to release August inventory, production and export data after 0430 GMT on September 10.
A Reuters survey predicts that Malaysian palm oil stocks will fall for the sixth consecutive month in August, falling 7.1% to 2.22 million tons.
At the same time, exports in July are expected to increase by 14.5% to 1.7 million tons, and output is expected to be 1.77 million tons, an increase of 1.8%.
Among other related oils, CBOT’s US soybean oil futures fell 1.3% on Thursday, but last rose 0.2% last Friday. Analysts said U.S. soybean futures fell more than 1% on Thursday as markets worried about tight supplies and weak export demand as the Sino-US trade war continued.
At the same time, the September soybean oil contract on the Dalian Stock Exchange rose 0.3%, and the Dalian January palm oil contract fell slightly by 0.1%. Palm oil prices are affected by related oil trends as they compete for share in the global vegetable oil market