KUALA LUMPUR: Malaysian palm oil futures hit a one-month high on Thursday, supported by expectations of better exports demand and lower stocks.

The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange was up 1.3pc at 2,204 ringgit ($540.06) a tonne at the close of trade in its fourth straight session of gains. It earlier rose as much as 1.8pc to 2,214 ringgit, the strongest since March 4.

“The market is supported by bullish preliminary estimates that Malaysia stocks may go down,” said a Kuala Lumpur-based trader. Another trader said Malaysia’s exports in March were also expected to be better than the previous month. Malaysian palm oil stockpiles rose to their highest in nearly two decades in December, and increased unexpectedly in February by 1.3pc to 3.05 million tonnes.

Published in Dawn, April 5th, 2019