KUALA LUMPUR: Malaysian palm oil futures rose over 1 per cent on Monday evening for a second consecutive session of gains, as the market was supported by strength in related edible oils and firm demand.
The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange gained 1.4pc at 2,458 ringgit ($636.79) a tonne at the close of trade, its strongest gains in a day since Feb 23. It rose to 2,465 ringgit earlier in the day, its highest levels in nearly a month. Volumes stood at 40,701 lots of 25 tonnes each at the close of trade. “Demand is encouraging. We believe exports will continue to be strong to the Middle East for Ramazan,” said a palm oil futures trader based in Singapore.
The Muslim holy month begins in mid-May, and incurs higher usage of cooking oil as devotees break day-long fasts with communal feasting. Palm oil is commonly used to make cooking oil, and demand for it in Muslim-populated regions grows a month before Ramazan.
Malaysian palm oil shipments for March rose 21.6pc versus the previous month, according to data from inspection company AmSpec Agri Malaysia on Saturday. Data released on Monday by cargo surveyor Societe Generale de Surveillance showed Malaysian shipments rose 19.4pc in March on a monthly basis.
Published in Dawn, April 3rd, 2018
