Malaysian palm oil price gains on demand recovery; output data in focus

KUALA LUMPUR: Malaysian palm oil futures charted their first gain in a week on Monday evening, supported by signs of a demand recovery, though traders were watching for official data on Malaysian output and inventories due this week.

The Bursa Malaysia Derivatives Exchange benchmark palm oil contract for December delivery was up 0.5% at 2,160 ringgit ($515.39) a tonne by the close of trade at 1000 GMT.

The Malaysian Palm Oil Board (MPOB) is due to release September data on palm oil inventories, exports and output on Thursday, with a Reuters poll suggesting that palm oil stockpiles are likely to have increased for the first time in seven months, rising 11.9% from August to 2.52 million tonnes.

Exports are expected to have dropped by 19.4% to 1.4 million tonnes from a three-year high in the previous month, dented by lower demand from markets such as India.ADVERTISING

“The market is cautious ahead of MPOB’s data release, but export demand in early October has been good,” said one Kuala Lumpur based futures trader.

In related oils, U.S. soyoil futures on the Chicago Board of Trade (CBOT) were last up 0.1%. Palm oil prices are affected by movements in related oils that compete in the global edible oils market. The Dalian commodity exchange is closed on Monday for national holidays. The market reopens on Tuesday. – Reuters

Source : The Star

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