Palm oil soars

August 27, 2019


KUALA LUMPUR: Malaysian palm oil futures rose on Monday, posting a fifth straight session of gains, as they tracked a rally in rival oils on the Dalian Commodity Exchange.

The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange was up 0.3 per cent at 2,269 ringgit ($541.53) per tonne at the close, its highest since six months ago.

“Dalian has been on a continuous uptrend since last week due to the escalating trade war,” said a Kuala Lumpur-based trader.

The September soyoil contract on the Dalian exchange climbed 1.7pc, while the Dalian September palm oil contract rose 3pc.

Another trader said one scenario the market was keenly watching was the possibility of palm oil decoupling from soyoil as a result of the trade war. Palm oil prices are impacted by movements in related vegetable oils as they compete for a share in the global edible oils market.

Slower output data continued to lend support to sentiment in the palm market. Data released by the Malaysian Palm Oil Association on Monday showed slower production growth for the first 20 days of August versus a month ago, according to traders.

Published in Dawn, August 27th, 2019