KUALA LUMPUR: Malaysian palm oil futures ended higher on Wednesday, buoyed by gains in soyoil on the US Chicago Board of Trade after President Donald Trump said China was back in the market buying US beans.

Trump said on Tuesday that China was buying a “tremendous amount” of US soybeans and that trade talks with Beijing were already underway by telephone, with more meetings likely among US and Chinese officials.

The benchmark palm oil contract for February delivery on the Bursa Malaysia Derivatives Exchange was up 0.9pc at 2,033 ringgit ($486.01) a tonne at the end of the trading session. Trading volumes stood at 31,625 lots of 25 tonnes each at the close of trade.

“Palm prices are up following CBOT,” said a Kuala Lumpur-based trader, referring to US soyoil prices. “Trump’s statement on soybean purchases by China lent support.”

The Chicago January soybean oil contract had gained 0.7pc on Tuesday, and was last up 0.5pc on Wednesday. In other related oils, the January soybean oil

contract on the Dalian Commodity Exchange fell 0.9pc, and the Dalian January palm oil contract declined 1.3pc.

Published in Dawn, December 13th, 2018