KUALA LUMPUR: Malaysian palm oil futures rose to a more-than-one-month high on Wednesday, reversing intraday losses caused by a bout of technical correction, as hopes of stronger exports provided support.
Shipments of Malaysian palm products jumped 32-34 per cent in the first half of September compared to a month ago, cargo surveyor data showed, with demand for crude palm oil more than doubling after the No. 2 grower scrapped export duties for September and October.
The benchmark December contract on the Bursa Malaysia Derivatives Exchange rose to 2,150 ringgit in late trade, the highest level since Aug. 14, before ending up 1pc at 2,140 ringgit ($665) per tonne.
Total traded volume stood at 71,020 lots of 25 tonnes, double the usual 35,000 lots.
Technicals showed that palm oil may end its current rebound around a resistance at 2,142 ringgit per tonne before starting a correction towards 2,055 ringgit, said Reuters market analyst Wang Tao.
Published in Dawn, September 18th , 2014
Source : Dawn