KUALA LUMPUR, Oct 14: Palm oil futures surged again on Tuesday but ended off their highs after the Malaysian Derivatives Exchange imposed curbs to address a volatile market.
Following Monday’s limit up of 100 ringgit a ton in most contracts due to a long-running rally in rival soyaoil, the market opened at least 40 ringgit higher across the board.
But further gains were limited as the exchange imposed an additional margin, or cash deposit, of 71 ringgit for each tonne, doubling the 70 ringgit a ton it charges to trade palm oil futures.
The benchmark third-month contract, December, closed at 1,651 ringgit ($434.47) a ton, up 43 ringgit from Monday, but off an intra-day high of 1,688 ringgit.
Overall market volume was 12,225 lots, more than double of Monday’s 5,837 lots.—Reuters
