Global vegetable oil markets edged higher on Tuesday as investors bet on strong holiday demand from China and India. Concerns that erratic weather will curb production of soybeans in South America and China as well as Canadian canola are also underpinning agriculture markets.
-- Malaysian palm oil higher
Malaysian palm oil ended up 0.2 percent but below a near 16-month high reached on Monday while US October soyaoil inched up during Asian hours, just below a two-year top hit the previous day. China's most-active May 2011 palm olein futures fell 0.3 percent and May 2011 soyabean oil gained 0.7 percent.
"After the oilseeds conference, investors believed the demand of vegetable oils will stay at high side," said a trader in a foreign brokerage in Malaysia, referring to the Globoil conference over the weekend in India. "Exports are definitely stronger this month. Generally China and India will replenish their stocks for holidays and festivals," the trader said. Cargo surveyors reported up to 17 percent jump in September 1-25 Malaysian palm oil exports compared to a month ago, driven by Asian and European demand.
There are concerns of tight grains and oilseed supplies next year. Traders are expecting lower soy acreage in the US in the next season, dry weather ahead of planting in South America and still lacklustre palm oil production in Indonesia and Malaysia.
Reuters technical analysis showed a bullish target at 2,800 ringgit per tonne for Malaysian palm oil remained intact, as it is poised to develop an explosive rally. The rally was also due to traders adjusting their positions after markets opened in China this week after a long holiday. Chinese financial markets will close again on Friday for the week-long National Day holiday.
Comments
Comments are closed.