KUALA LUMPUR, May 18: Malaysian crude palm futures ended 1.6 per centhigher on Friday, lifted by strong prices of soyaoil and expectations of a steady increase in exports this month.
Traders said concerns over dwindling palm oil reserves,which are likely to dip further this month, also affected the market. The benchmark August contract finished up 37 ringgit, or 1.6 per cent at 2,370 ringgit ($697) a ton after hitting as session high of 2,382 ringgit.
The palm oil market has gained close to 19 per cent this year after surging 40 per centin 2006 on the back of demand from the biodiesel and food sectors. Shares of palm plantation firms have hit record highs on bullish prices, led by sector bellwethers such as IOI Corp, Kuala Lumpur Kepong and Golden Hope.
Malaysia's plantation index has risen more than 40 per centthis year. Malaysia's Synergy Drive, a new entity that is set to become the world's largest listed oil palm planter, expects palm oil yields to increase to 25 tons per hectare from 21 tons, the firm said on Friday. Other traded months rose between 15 and 59 ringgit. Overall volume stood at 11,253 lots of 25 tons each.
The Malaysian Palm Oil Board said the country's April closing stocks fell 11.65 per cent to 1,181,320 tons, the lowest in almost three years.—Reuters
