KUALA LUMPUR: Malaysian palm oil futures ended higher on Tuesday, helped by expectations of importers stocking up on the commodity in case of further coronavirus-led lockdowns and a recovery in prices of rival oils.
The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange climbed 2.88 per cent to 2,359 ringgit ($552.01) a tonne.
“There are expectations for exports to stay firm in the view that China and India may stock up in case a second wave of the coronavirus outbreak leads to lockdowns again,” a Kuala Lumpur-based trader said.
Fears of a resurgence of infections have been pressuring crude oil and global markets, although oil prices rose on Tuesday as the International Energy Agency (IEA) increased its oil demand forecast for 2020 and as record supply cuts supported.
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
Published in Dawn, June 17th, 2020
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