Commodities

Palm hits 6-month high on lower output expectations

Reuters Kuala Lumpur | Updated on August 23, 2019 Published on August 23, 2019

Malaysian palm oil futures climbed to a fresh six-month peak on Friday, charting a fourth straight session of gains on expectations that production will be lower than initially forecast.

The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange was up 0.3 per cent at 2,263 ringgit ($540.10) a tonne at the close of trade.

Palm has gained 3.2 per cent this week on slower-than-expected output growth and stronger exports.

“There is talk of lower than initially expected output which drove the market, though it later came off,” said a Kuala Lumpur-based futures trader, referring to production in Malaysia, the world’s second largest palm producer.

Malaysian palm oil exports during August 1-20 rose between 6.2 per cent and 13 per cent from a month ago, data from cargo surveyors showed.

Palm prices were down in the first half of trade tracking overnight weakness in US soya oil and on profit taking, said traders. US soya oil futures on the Chicago Board of Trade were last up 0.2 per cent on Friday, following a 0.8 per cent decline on Thursday.

Published on August 23, 2019
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