KUALA LUMPUR, Sept 17: Malaysian crude palm oil futures closed higher on Monday due to rising soybean oil, but pared some of the gains after export estimates from a cargo surveyor disappointed the market.
The most-active December contract on the Bursa Malaysia Derivatives Exchange finished up 12 ringgit at 2,590 ($743) ringgit a ton after hitting an intraday low of 2,526 ringgit.
The contract earlier rose as much as 41 ringgit, or 1.6 per cent, to 2,619 ringgit a ton, a level not seen since Aug.1.
There is no reason other than SGS because soyaoil is still higher and there is nothing wrong with the ringgit, one leading trader said referring to export estimates from Societe Generale de Surveillance which showed Sept 1-15 palm shipments up just 2.2 per cent.
On Saturday, cargo surveyor Intertek Testing Services said Malaysian palm oil products during the period rose 10.7 per cent to 631,096 tons from 570,107 tons shipped between Aug. 1 and 15.
Palm oil, used in making sweetmeats and other delicacies During current festive season in Asia, is around 6 percent off an historic high of 2,764 ringgit reached in June.
Other traded months rose between 3 and 26 ringgit xcept of October which fell 6 ringgit. Overall trade stood at 11,534 lots of 25 tons each.
Most-active December soyaoil settled up 0.35 cent at 40.02 cents per lb after raising its contract high to 40.15 cents. It extended gains in electronic trade during Asian hours, rising 0.7 percent to 40.30 cents per lb.
Malaysian palm oil output rose 14.83 per cent to 1.6 million tons in August and reserves increased by 10.95 per cent to 1.45 million ton s, according to the Malaysian Palm Oil Board.
January palm oil on Singapore’s Joint Asian Derivatives Exchange was up $6.25 at $751.50 a ton by 1029 GMT but onlt 2 lots were traded.
In the physical mkark, crude palm oil for September shipments was quoted at 2,620/2,630 ringgit a ton . Trades were done between 2,630 and 2,640 ringgit.—Reuters
