SINGAPORE: Malaysian palm oil futures rose 18% this year, marking its second year of growth, as supplies dry due to unfavourable weather and infrastructure issues while demand remained firm.
The benchmark palm oil contract for March delivery on the Bursa Malaysia Derivatives Exchange closed its last trading day of the year 14 ringgit higher, or 0.4%, at 3,602 ringgit ($896.02) a tonne, due to higher export data. “Palm oil fell because of higher exports but a firmer ringit capped gains,” a Kuala Lumpur-based trader told Reuters.
Palm oil has gained 18% this year, adding to the previous year’s near 44% jump, Refinitiv data showed.
Exports of Malaysian palm oil products for Dec. 1-25 rose 14.4% to 1,290,257 tonnes from 1,127,495 tonnes shipped during Nov. 1-25, cargo surveyor Societe Generale de Surveillance said on Thursday.
Weighing on palm oil prices on Thursday, however, was a firmer ringgit that rose by 0.4% against the dollar, making the edible oil less attractive for holders of foreign currencies.
On Wednesday, the United States banned imports of palm oil from Malaysian producer Sime Darby Plantation over allegations of forced labour in the production process.
Earlier on Thursday, palm prices tracked rival oils higher. Dalian’s most-active soyaoil contract rose 0.9%, while its palm oil contract edged 0.5% higher. CBOT soyaoil prices were last up 0.5%, after rallying to a fresh 6-1/2-year high overnight as investors turned their focus to dry weather that threatened South America’s soy crops.—Reuters
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