SINGAPORE: Malaysian palm oil futures closed more than 2 per cent higher on Friday, extending a winning streak to six consecutive weeks, after an industry body forecast a lower-than-expected rise in production and as the ringgit weakened.
The benchmark palm oil contract on the Bursa Malaysia Derivatives Exchange closed at 2,579 ringgit ($624.30) per tonne, rebounding from losses earlier in the session. The contract had opened 1.3pc lower as rival oils cheapened. Palm oil is affected by price movements in related oils as they compete for share in the global vegetable oils market.
A Kuala Lumpur-based trader told Reuters that prices had turned around because of new estimates from the Malaysian Palm Oil Association showing production rose 1.02pc in October to 1.86 million tonnes. That was lower than the 2pc rise forecast in a Reuters poll. The Malaysian Palm Oil Board is due to issue official October data on Monday.
Published in Dawn, November 9th, 2019