KUALA LUMPUR, May 6: Malaysian crude palm oil futures closed firm on Friday after signs that palm oil exports were performing better in May than in April, dealers said. A slight rebound in rival US soyaoil, and short covering activity that began on Thursday, also helped. Trade volumes were, however, light as players awaited Tuesday’s release of official supply/demand figures of palm oil for April to decide direction.
Overall volume stood at 3,930 lots of 25 tons each. The market usually sees 6,000 lots or more on an active day.
The Malaysian ringgit has been fixed at 3.8 to the dollar since 1998 and the government has repeatedly said it saw no reason to alter the peg despite economists saying its value was higher now.
A higher ringgit will make palm oil, sold in dollars, more expensive. Malaysia is the largest palm oil producer and can influence the global prices of the commodity. In Friday’s physical crude palm oil market, May and June contracts saw bids at 1,415 ringgit a ton, against offers at 1,425. Trades were reported for May at 1,415-1,420 ringgit a ton in Malaysia’s southern and central regions.—Reuters
