JAKARTA, Dec 20: Malaysian crude palm oil futures extended gains in active trade on Tuesday on the back of a strong rally in Chicago soyaoil prices, but lower-than-expected exports in December curbed gains.
The forward months of February and March still held above 1,400 ringgit a ton on expectations demand from key vegetable oil buyers such as China would flow in early next year, in addition to an anticipated rise in purchases by biofuel makers.
Overall volume was 4,917 lots of 25 tons each, climbing from Monday’s 3,399 lots. The market can breach 6,000 lots on a typically busy day.
Traders said the market would likely trade in the range of 1,390-1,420 ringgit a ton in the next few days.
On the spot market, offers for December closed at 1,400 ringgit a ton against bids at 1,390. Trades were reported at the same prices of 1,390 to 1,400 ringgit per ton in Malaysia’s southern and central regions. For January delivery, offers were quoted at 1,410 ringgit a ton, against bids at 1,395 ringgit.—Reuters
