Malaysian palm oil futures ended higher on Wednesday on the back of firmer soyoil markets although the surging ringgit currency nipped gains. Palm oil, which lost 4 percent in the first quarter of 2010, is making little headway as the ringgit reached multi-month highs at the start of the second quarter.
The benchmark June crude palm oil contract on Bursa Malaysia Derivatives Exchange rose 19 ringgit, or 0.8 percent, to settle at 2,539 ringgit ($790.5). Traded volume stood at 12,606 lots of 25 tonnes each, up from the usual 10,000 lots. The ringgit extended its rally to a 23-month high of 3.1930 per dollar, eating into refiners' margins as crude palm oil feedstock for refined products is priced in the Malaysian currency.
A China Ministry of Commerce source has refuted claims it was curbing soybean oil shipments from Argentina, saying new quality standards were for consumer safety, the China Daily reported on Wednesday. Oil slipped back from 18-month highs around $87 on Wednesday, taking a breath after two weeks of gains. US soyoil futures still held up although gains were limited. But China's Dalian Commodities Exchange strengthened with the most active September contract up 1.3 percent on China curbing soyoil imports.
INDONESIA PALM OIL TRADES In Indonesia, Jakarta-based PT KBN Nusantara, formerly known as the state marketing centre, sold 6,500 tonnes of crude palm oil in an auction at a top price of 7,370 rupiah ($0.815) per kg, against 7,303 rupiah per kg on Tuesday.
Producers in Medan, home to Indonesia's main palm oil export port of Belawan, did not hold any palm oil tenders on Wednesday. Refiners in Jakarta offered refined, bleached, deodorised (RBD) Palm Olein - used as cooking oil - at 7,700 rupiah per kg, against 7,675 rupiah per kg on Tuesday.
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