Malaysia’s crude palm oil futures rose 1 per cent yesterday, climbing from a 12-week low hit in early trade, supported by stronger crude oil and soybean prices, traders said.
“We saw improvement in crude oil and soybean in late trade.
That prompted short-covering but I think the market is still in a downtrend,” said a trader at a brokerage, who cited demand concerns.
A rise in exports is seen as key to match an anticipated increase in production this month. The market is awaiting Oct 1-10 palm oil export data due out next week for fresh leads but traders said they expect poor numbers as a long holiday likely cuts demand from key buyer China.
Prominent industry analyst Dorab Mistry has warned that palm oil prices needed to fall to RM1,900 to stimulate demand and keep stocks under control.
“In the physical market, the buyers were not enthusiastic as they are looking to buy at lower level,” the trader said.
The benchmark December contract on the Bursa Malaysia Derivative Exchange settled up RM20, or 1.0 per cent, to RM2,062 ringgit a tonne, after going as low as RM2,013, a level not seen since July 13. Trade volumes were at 26,787 lots of 25 tonnes each.
In the physical market, palm oil for October delivery was traded at RM2,090-RM2,100 in the southern and at RM2,065-RM2,090 in the central region. Source : Business Times]]>