KUALA LUMPUR, May 24: Malaysian crude palm futures ended 2.3 per cent higher on Thursday to hit fresh near-nine-year highs, boosted by firm soyaoil prices and hopes of robust growth in exports.
The benchmark August contract finished up 56 ringgit, or 2.3 per cent, at 2,445 ringgit ($722) a ton. It touched a session high of 2,452 ringgit, a level not seen since September 1998.
The market is going all out after soybean oil's gains overnight, said a dealer. “Also, there are growing expectations that export numbers would pick up.” Cargo surveyors Intertek Testing Services and Societe Generale de Surveillance will release May 1 to 25 export numbers on Friday.
Traders said the numbers could range between 900,000 and 920,000 tons.
If the export numbers stay within this range, it really indicates that demand is not letting up even though prices have been very high, said another trader.
The palm oil market has shot up close to 23 per cent this year after surging 40 per cent in 2006 on the back of demand from the biodiesel and food sectors.
Other traded months rose between 28 and 68 ringgit, with overall trade at 12,831 lots of 25 tons each.
Traders said the nearby contract months would remain high because of tight supplies at home and healthy demand from top importers China and India.
Malaysian palm oil stocks are forecast to decline 9.4 per cent in May to 1.07 million tons, hitting a new three-year low, a Reuters poll showed on Thursday.
Malaysian palm oil usually follows the US soyaoil market because both commodities are used in products ranging from food and cosmetics to biodiesel.
Exports of Malaysian palm oil products for May 1-20 rose 1.3 per cent to 799,579 tons from 789,644 shipped between April 1 and 20, cargo surveyor Societe Generale de Surveillance said.
In the physical market, crude palm oil for May shipment in the southern region was quoted at 2,575/2,590 ringgit a ton.
Trades were done between 2,550 and 2,575 ringgit.—Reuters
