Palm oil gains
KUALA LUMPUR: Malaysian palm oil finished in positive territory on Wednesday, tracking other vegetable oils higher after a bullish overnight US agriculture department report but with traders remaining cautious after Greece’s debt default.
The September palm oil contract on the Bursa Malaysia Derivatives exchange extended earlier gains to close 1.8 per cent higher at 2,268 ringgit ($606) a tonne after trading in a range of 2,234-2,268 ringgit.
Palm prices are 0.4pc lower for the week and trading near one-month lows.
“The market is very positive because the USDA report is very positive for the grains complex,” said a palm trader with a foreign commodities brokerage in Malaysia.
“There is (still) a lot of uncertainty ... so we are back to talking about competitive oils.”
Total traded volume for palm was 36,858 lots of 25 tonnes each, compared with the usual 35,000 lots.
In other vegetable oils, the US July soyoil contract fell 0.5pc, while the most active January soybean oil contract on the Dalian Commodity Exchange added 2.2pc.
Published in Dawn, July 2nd, 2015
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