Palm oil little changed

June 26, 2014

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Kuala Lumpur: Malaysian palm oil futures were little changed on Wednesday after rising to their highest in nearly a month in early trade, as risks of disruptions to Iraq’s oil supply eased, although a small rise in export data lifted hopes of a recovery in demand.

The benchmark September contract on the Bursa Malaysia Derivatives Exchange stood at 2,482 ringgit ($770) per tonne by Wednesday’s close, flat from Tuesday’s session.

The contract earlier rose to its highest since May 28, and traded between 2,481 ringgit and 2,511 ringgit.

A report from cargo surveyor Intertek Testing Services showed that exports of Malaysian palm oil products during June 1-25 inched up 3 per cent to 1,126,927 tonnes compared with a month ago, the first rise this month, thanks to slightly better demand from India and China.

Another cargo surveyor Societe Generale de Surveillance reported that exports for the same period rose only 0.4pc.

Market players said prices were also supported by earlier gains in soyoil markets.

In competing vegetable oil markets, the US soyoil contract shed 1pc in early Asian trade.

Published in Dawn, June 26th, 2014