MUMBAI: Malaysian palm oil futures climbed roughly 2 per cent on Thursday, supported by gains in rival US soyoil and as a price correction to a near three-year low boosted export demand.
The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange was up 1.76pc at 2,201 ringgit ($542.39) a tonne at the end of the trading day, after rising 0.5pc on Wednesday.
Trading volume stood at 51,242 lots of 25 tonnes each at the close of trade.
“Export demand is picking up at lower level,” said a Kuala Lumpur-based trader, referring to the fall in palm prices to 2,140 ringgit on Wednesday, the weakest since September 2015.Exports of Malaysian palm oil products for July 1 to 25 rose 5pc from the corresponding period last month, inspection company AmSpec Agri Malaysia said on Wednesday.
The gains in US soyoil and crude oil prices also supported the market, said another Kuala Lumpur-based trader.
US soyoil rose following soybean futures, which climbed nearly 2pc on expectations of higher exports to Europe after talks between Washington and the European Union.
Palm oil prices are usually affected by the performance of other edible oils as they compete for a share in the global vegetable oils market.
Published in Dawn, July 27th, 2018
