Palm jumps 2pc on soy­oil sup­ply out­look

The Financial Daily - - MARKET SUMMARY -

KUALA LUMPUR/JAKARTA: Malaysian palm oil fu­tures rose nearly 2 per cent on Wed­nes­day on mar­ket views for a smaller US soy acreage this year that could lead to less competition with soy­oil and boost de­mand for the trop­i­cal oil.

Palm oil traders are wait­ing for the US plant­ings re­port due on Thurs­day, which may help re­verse the mar­ket's 13 per cent de­cline so far this year. Higher palm oil out­put and the cur­rent dip in de­mand have pres­sured prices.

"Lo­cal sen­ti­ment is get­ting driven by over­seas mar­kets. The plant­ing of soy­beans is very im­por­tant to the palm oil mar­ket," said a trader with for­eign bro­ker­age in Kuala Lumpur.

The bench­mark June crude palm oil con­tract on Bursa Malaysia De­riv­a­tives closed up 1.9 per cent at 3,312 ring­git ($1,093) a tonne. The con­tract touched a high of 3,323 ring­git ear­lier, its high­est since March 25.

Traded vol­ume stood at 19,561 lots of 25 tonnes each, up from 18,442 lots on Tues­day.

Tech­ni­cal charts showed Malaysian palm oil could re­visit its Fe­bru­ary high of 3,967 ring­git over the next three months, based on its wave pat­tern.

But palm oil's Malaysian fun­da­men­tals re­main bear­ish. Out­put is mov­ing into a higher cy­cle from the first quar­ter of 2011 af­ter two years of weak yields and er­ratic weather.

Cargo sur­vey­ors are due to is­sue Malaysia's March ex­ports on Thurs­day and traders ex­pect vol­umes to reach 1.15 mil­lion tonnes, a tad higher than the 1.1 mil­lion tonne lev­els seen in Fe­bru­ary and has­ten­ing a buildup in in­ven­to­ries.

ICDX's June CPO fu­tures con­tract was at 9,605 ru­piah per kg, com­pared to 9,460 ru­piah per kg when it opened. Mar­ket vol­ume was 1,510 lots of 10 tonnes each.

The most ac­tive Septem­ber soy­oil in China's Dalian Com­mod­ity Ex­change rose to 10,100 yuan ver­sus 10,086 yuan at the open. -Reuters

Newspapers in English

Newspapers from Pakistan

© PressReader. All rights reserved.