Malaysian crude palm oil closed nearly 1 percent higher on Thursday, recovering from losses the previous day on gains in crude oil, but worries over inventories and a firmer ringgit limited gains. The benchmark September contract on Bursa Malaysia's Derivatives Exchange settled up 20 ringgit or 0.88 percent to 2,290 ringgit ($716) a tonne after trading as high as 2,310 ringgit per tonne.
Overall volume stood at 14,577 lots of 25 tonnes each, more than the usual 10,000 lots. "The market gains purely on external markets as crude oil jumps," said a trader with a foreign brokerage firm in Kuala Lumpur. Players were awaiting fresh leads from the Malaysian Palm Oil Board report on June production and stock due on Monday. A Reuters poll on Wednesday showed Malaysia's palm oil stocks may be 1.8 percent higher in June, reversing a six-month decline, on a production recovery and slightly weaker exports.
On Thursday, other vegetable oils were mixed with US soyaoil for August delivery falling 0.51 percent, while the most active January soyaoil contract on China's Dalian Commodity Exchange rose 0.85 percent.
INDONESIA PALM TRADES: The Jakarta-based PT KPB Nusantara, formerly known as the state marketing centre, sold 8,500 tonnes of crude palm oil offered in an auction on Thursday with the top price at 7,026 rupiah ($0.776) per kg, against 7,023 rupiah per kg on Tuesday. Producers in Medan, home to Indonesia's main palm oil export port of Belawan, sold crude palm oil with top price 7,030 rupiah per kg. Refiners in Jakarta offered refined, bleached, deodorised (RBD) palm oil, used for cooking oil, at 7,420 rupiah against 7,350 rupiah per kg on Wednesday. PT Astra Agro Lestari Tbk offered 500 tonnes of palm kernel oil at $1,035 a tonne. Buyers bid at $1,024 a tonne but no deals were done.
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