KUALA LUMPUR: Malaysian palm oil futures rose on Tuesday evening, lifted by strength in rival edible oils and as demand expectations improved, traders said.
“We’re seeing a bit of bargain-buying ... Exports could improve as buyers rush to take advantage of Malaysia’s tax suspension,” said a Kuala Lumpur-based futures trader, referring to a three-month palm oil export tax suspension expected to increase demand and boost prices. The Malaysian government introduced the move in early January. The zero tax is set to end on April 7. The gains may not be sustainable, though, as production in March is expected to rise, the trader added.
The benchmark palm oil contract for May delivery on the Bursa Malaysia Derivatives Exchange was up 1.3 per cent at 2,413 ringgit a tonne at the close of trade, a second straight day of gains and its biggest daily rise in two weeks. Before eking out a gain of 0.2pc on Monday, the contract fell to its lowest in more than 1-1/2 years at 2,350 ringgit a tonne on Monday.
Published in Dawn, March 14th, 2018
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