Malaysian Palm Oil Wildlife Conservation Fund (MPOWCF)
oil futures climbed to the highest level in almost 30 months on
speculation that a drop in November output and stockpiles in Malaysia,
the second-largest producer, may strain global supplies.
futures gained as much as 1.1 percent to 3,671 ringgit (US$1,172) a
metric ton, the highest since June 17, 2008, and traded at RM3,668 at
11:53 a.m. local time. The contract climbed 3.3 per cent last week.
production outlook for December is looking no better as rainy weather
continues to plague estates and the sector is going into its seasonal
down cycle which typically occurs in the January-March period,” Bernard
Ching, an analyst at ECM Libra Capital Sdn Bhd, said in a report today.
in Malaysia fell to the lowest level in five months while stockpiles
slid for the first time in four months. Heavy rainfall caused by a La
Nina weather event has reduced oil-palm yields in Indonesia and
Malaysia, the biggest producers.
Production declined 11 percent to 1.46 million tons last month from 1.64
million tons in October, according to data from the Malaysian Palm Oil
Board. Inventory dropped 8.7 per cent to 1.64 million tons from 1.79
million tons, and exports gained 2.7 percent to 1.5 million tons.
inventory may decline further with a pick-up in demand for the festival
season, Ching said. Chinese purchases rise before the Lunar New Year,
when demand for food soars. The celebration will take place in early
February. – Bloomberg
Source : Business Times
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