KUALA LUMPUR: Malaysian palm oil futures ended higher on Thursday, recovering from the morning session and snapping four straight days of losses as weak prices attracted buying interest for the tropical oil.
“At this level demand is returning,” said a trader with a local commodities brokerage in Malaysia. “Fresh buyers are entering the market after the recent sell off.”
By Thursday’s close, the benchmark August contract on the Bursa Malaysia Derivatives exchange had edged up 0.8 per cent to 2,158 ringgit ($599.28) a tonne. Total traded volume stood at 42,418 lots of 25 tonnes each, above the average 35,000 lots.
The start of the holy month of Ramazan next month, marked by communal fasting and feasting by Muslims, typically drives up consumption of edible oils and may underpin demand for palm in May and June.
Published in Dawn, May 22nd, 2015
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