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Malaysian palm oil prices at highest level for more than a week despite data
KUALA LUMPUR: Malaysian palm oil futures rose to their highest level in over a week on Thursday evening on expectations of soyoil gains, despite the earlier release of bearish industry data.
The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange was up 1.3 percent to 2,663 ringgit ($620.75) on Thursday evening. It earlier climbed to an intraday high of 2,672 ringgit, its highest level since August 1.
Traded volumes stood at 66,765 lots of 25 tonnes each at the close of trade.
“The market could be up on overseas strength and in anticipation of bullish U.S. Department of Agriculture reports, which could announce a trimming in soy crops and yields in a report tonight,” said a Kuala Lumpur-based futures trader.
Another trader added that the market had earlier forecast a drop in prices due to bearish data reports from the Malaysian Palm Oil Board.
Malaysia’s palm oil stocks at end-July rose 16.8 percent to 1.78 million tonnes from the previous month, versus a Reuters poll which forecast a 6.5 percent rise in inventory levels.
Official data also showed July output rising 20.7 percent to 1.83 million tonnes, compared with a forecast for a 11 percent gain to 1.68 million tonnes.
“Perhaps the market had taken into consideration the production rise,” said the second trader.
Palm was up in early trade as well, supported by a weaker ringgit and overnight gains in soyoil on the Chicago Board of Trade. The ringgit, palm oil’s trading currency, fell against the dollar to its weakest level in nearly a month onThursday morning.
It was last down 0.1 percent at 4.29 per dollar. A weaker ringgit makes palm oil cheaper for holders of foreign currencies.
Meanwhile the October soybean oil contract on the Chicago Board of Trade, which gained 0.9 percent on Wednesday, was last up 0.4 percent on Wednesday.
The January soybean oil contract on the Dalian Commodity Exchange rose 0.6 percent, while the January palm olein contract was up 0.1 percent. – Reuters
Source: http://www.thestar.com.my/business/business-news/2017/08/11/palm-oil-prices-at-highest-level-for-more-than-a-week-despite-data/#PsA0fAqf7uuHcYi7.99