SINGAPORE, Oct 10: Malaysian palm oil futures edged up on Wednesday to their highest in more than a week, tracking other vegetable oil markets, although gains were limited by record stockpiles.
Malaysia’s palm oil stocks in September surged 17.4 per cent from a month ago to a record 2.48 million tons on strong production, the Malaysian Palm Oil Board said after the midday break. The rise in stocks exceeded market expectations of 2.46 million tons, paring gains that had earlier sent futures to an intraday high at 2,483 ringgit, a level last seen on Oct. 1.
Prices fell to a near three-year low last week but have since been recovering steadily on bargain-hunting and prospects of a cut in export tax by the Malaysian government.
The benchmark December contract on the Bursa Malaysia Derivatives Exchange had edged up 0.8 per cent to close at 2,457 ringgit ($800) per ton. Total traded volumes stood at 45,198 lots of 25 tons each, much higher than the usual 25,000 lots. Malaysia’s palm oil exports for Oct. 1-10 fell 1 per cent to 448,624 tons from a month ago, cargo surveyor Intertek Testing Services said on Wednesday.—Reuters