Malaysian crude palm oil futures jumped 1.6 percent on Thursday, boosted by firm soyaoil and ahead of a price outlook conference next week that is widely expected to give a bullish forecast.
The benchmark third-month May contract on the Bursa Malaysia Derivatives exchange was up 30 ringgit, or 1.6 percent, at 1,963 ringgit ($560) a tonne. "People are expecting the market to touch 2,000 ringgit during the conference or immediately after that," said one dealer.
"Today soyaoil is also supporting the market, because it was driven up by the firm crude oil market." Bursa Malaysia is organising an annual palm oil price outlook conference from March 12 to 14, when industry gurus Drab Mistry, James Fry, Thomas Milk and others will present their views and give price forecasts.
Other contracts were up between 15 and 28 ringgit. Overall volume was down at 8,345 lots of 25 tonnes each, compared with around 12,000 lots traded a routine day.
The market just 4.7 percent below an eight-year high of 2,062 ringgit reached in December, when floods disrupted deliveries.
Chicago Board of Trade soyabean futures soared Wednesday, supported by the strength in soyabean oil and crude oil, traders said. March soyaoil closed 0.40 cent higher at 29.85, with the deferred months up 0.28 to 0.36 cent. Malaysian palm oil usually follows the US soyaoil market because both commodities are used in products ranging from food and cosmetics to biodiesel.
The state-run Malaysian Palm Oil Board will release February exports, output and stocks data on March 12. On the same day, cargo surveyors will unveil export numbers for March 1 to 10. In Malaysia's physical market, crude palm oil for March shipment was quoted at 1,965/1,970 ringgit per tonne. Trades were done between 1,955 and 1,965 ringgit.
Exports of Malaysian palm oil products for February 1-28 fell 10.1 percent to 856,192 tonnes from 952,753 tonnes shipped between January 1 and 31, cargo surveyor Interlake Testing Services said. Another surveyor, Society General de Surveillance, said exports during the period fell 10.3 percent to 858,485 tonnes.
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