KUALA LUMPUR: Malaysian palm oil futures climbed to a fresh six-month peak on Friday, charting a fourth straight session of gains on expectations that production will be lower than initially forecast.
The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange was up 0.3 per cent at 2,263 ringgit ($540.10) per tonne at the close of trade. It earlier rose as much as 0.7pc to an intraday high of 2,271 ringgit, its highest level since Feb 25.
Palm has gained 3.2pc this week on slower-than-expected output growth and stronger exports.
“There is talk of lower than initially expected output which drove the market, though it later came off,” said a Kuala Lumpur-based futures trader, referring to production in Malaysia, the world’s second largest palm producer.
Data released by a state millers association earlier this week showed slower output growth for the first 20 days of August compared with a month earlier, according to traders.
Malaysian palm oil exports during Aug 1-20 rose between 6.2pc and 13pc from a month ago, data from cargo surveyors showed.
Published in Dawn, August 24th, 2019