KUALA LUMPUR: Malaysian palm oil futures ended higher on Thursday, snapping a three-day losing streak as investors short-covered positions ahead of the long weekend and as a small recovery in the comparative soy oil markets provided some relief to palm.
Palm prices had slid to a more than 11-month low on Wednesday, dragged by fears of rising global oilseed supplies and growers’ estimates that palm oil output in Malaysia surged during the July 1-20 period.
The benchmark October contract on the Bursa Malaysia Derivatives Exchange had inched up 1.2 per cent to 2,281 ringgit ($719) per tonne by Thursday’s close.
Prices remained in a tight range between 2,261 and 2,285 ringgit. Total traded volume stood at only 23,752 lots of 25 tonnes, below the usual 35,000 lots.
The US soyoil contract edged up 0.4pc in late Asian trade, while the most active soybean oil contract on the Dalian Commodities Exchange rose 0.2pc.
Published in Dawn, July 25th , 2014
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