Malaysian crude palm oil futures closed sharply higher on Friday as strong export estimates from cargo surveyors ignited buying, dealers said. The benchmark third-month January contract on the Bursa Malaysia Derivatives market finished up 1.8 percent or 30 ringgit at 1,680 ringgit ($460) a tonne.
Other traded contracts gained between 18 and 32 ringgit. Overall volume stood at 18,865 lots of 25 tonnes each. "Buyers rushed in to cover positions after export numbers were released," one dealer said. "Stocks are expected to come down as production is going to be lower."
Malaysia's palm oil stockpile is likely to decline this month from the record level of 1.799 million tonnes because of robust exports and this week's holidays for Eid-ul-Fitr. Exports of Malaysian oil palm products for October 1-25 rose 10 percent to 1,229,198 tonnes from 1,115,370 shipped between September 1 and 25, cargo surveyor Intertek Testing Services said.
Another cargo surveyor, Societe Generale de Surveillance, whose numbers are closely tracked by the industry, said exports rose 7.4 percent to 1,178,379 tonnes during the period. In the physical crude palm oil market, November shipment was quoted at 1,615/1,625 ringgit a tonne. Trades were done at 1,605 ringgit.
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