KUALA LUMPUR: Malaysian palm oil futures extended gains for a sixth straight session on Wednesday, rising over 3 per cent to hit a more than 18-month high, on expectations of declining production but a stronger ringgit capped gains.
The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange closed 3.4pc higher at 2,498 ringgit ($597.82) per tonne. It earlier hit as high as 2,499 ringgit per tonne, which was its highest since April 6 last year.
The rally is due to strength in palm oil on the Dalian Commodities Exchange as well as talks that production has been declining, a Kuala Lumpur-based trader told Reuters. Dalian’s January palm oil contract on Wednesday last traded 1.8pc higher at a record 5,220 yuan($740.02) per tonne.
Published in Dawn, October 31st, 2019