Selangor Journal
A worker loads palm oil fruit bunches at an oil palm plantation in Slim River, Perak, on August 12, 2021. — Picture by REUTERS

Palm oil extends gains on strong exports, tight stockpiles

KUALA LUMPUR, July 11 — Malaysian palm oil futures rose for a second session today, underpinned by improving export demand and a slower-than-anticipated rise in inventories. 

The benchmark palm oil contract FCPOc3 for September delivery on the Bursa Malaysia Derivatives Exchange gained RM22, or 0.56 per cent, to RM3,942 (US$845.74) a tonne in early trade.

Malaysia’s palm oil inventories at the end of June rose 1.9 per cent to 1.72 million metric tonnes from the previous month, much smaller than expected, the Malaysian Palm Oil Board data showed yesterday.

Exports from Malaysia during the July 1-10 period rose between 18.7 per cent and 26.1 per cent, showed data from cargo surveyors Amspec Agri and Intertek Testing Services.

The condition of US soybean crops improved over the past week after rains in the parched US crop belt, though they remained the worst in more than a decade and spring wheat conditions worsened, Washington’s data showed. 

Soy oil prices on the Chicago Board of Trade BOcv1 eased after a 4.3 per cent overnight surge. Dalian’s most-active soy oil contract DBYcv1 rose 0.7 per cent while its palm oil contract DCPcv1 gained 1.3%.

Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.

Palm oil may rise to RM4,039 per metric tonne, as its uptrend from RM3,512 has resumed, Reuters technical analyst Wang Tao said.

Asian shares bounced and the safe-haven dollar edged lower as investors hope this week’s US inflation data support an imminent end to rate hikes, and cheer the prospect China will deliver economic stimulus to prop up stalling growth.

— Reuters

Top Picks

Malaysian furniture industry resilient despite stiff competition — DPM

Editor Selangor Journal

Pasir Mas flood evacuees down to 711 tonight

Editor Selangor Journal

Nvidia to support Malaysia’s aim to be a top 20 country in terms of AI, says Anwar

Editor Selangor Journal