MALAYSIAN crude palm oil futures rose 1.2 per cent by midday today,
boosted by rising oil prices and fears that rainy weather may cut
output, traders said.
“From what everybody can see from the screen, it is crude oil that
pushed the market higher. There is also talk about floods, and
continued rains,” said a trader at a Kuala Lumpur-based brokerage.
Palm prices tend to track crude oil because of its use for biodiesel, which competes with fossil-based fuel.
The benchmark February contract on Bursa Malaysia Derivatives
Exchange rose RM27 ringgit to RM2,369 (US$703.18) per tonne. Overall
volume was 7,461 lots of 25 tonnes each.