KUALA LUMPUR: Malaysian palm oil futures surged nearly 2 per cent on Tuesday evening, tracking gains in related edible oils and on prospects of reduced stockpiles because of higher exports.

The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange was up 1.9pc at 2,153 ringgit ($527.31) a tonne at the close of trade, its highest for a week. The contract also registered its sharpest daily gain since January 3 and a second straight session of gains.

Cargo surveyors Intertek Testing Services and AmSpec Agri Malaysia on Monday said that Malaysia’s palm oil exports in March rose about 22pc from the previous month. Another cargo surveyor, Societe Generale de Surveillance, reported a monthly rise of 28.1pc. Strong gains in exports could help to reduce stockpiles in Malaysia, which rose to their highest in nearly two decades in December. Stocks had risen unexpectedly in February, by 1.3pc to 3.05 million tonnes.

Meanwhile, the May soyoil contract on the Dalian Commodity Exchange edged up 0.3pc and the Dalian May palm oil contract rose 1.1pc.

Published in Dawn, April 3rd, 2019