KUALA LUMPUR: Malaysian palm oil futures surged 2 per cent on Thursday, rising to a one-week high and recovering from a two-week low hit in the previous session, on the back of strength in related edible oils.
Cargo surveyor data showing rising export demand and forecasts of stronger demand from China also supported the market, said traders. China is expected to import 450,000 tonnes of palm oil per month in August and September, compared with a forecast of 250,000 tonnes for July, according to a report by the China National Grain and Oils Information Center (CNGOIC).
Chinese traders booked seven palm oil cargoes of around 80,000 tonnes on Tuesday due to lower prices in overseas markets, CNGOIC said. As prices in overseas markets further weaken and futures on China’s Dalian Commodity Exchange remain strong, local traders are expected to book more cargoes and domestic palm oil stocks will start growing in August, it added.
Published in Dawn, July 21st, 2017
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