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Palm oil hits 3-wk high on demand hopes
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KUALA LUMPUR: Malaysian crude palm oil futures hit fresh three-week highs on Wednesday as traders bet on a recovery in exports this month even as news of China buying rival soyoil prompted some pullback.
Palm oil exports from Malaysia declined up to 17 per cent in August, and some traders expect a rebound next month as the world's top two buyers, India and China, get ready for a string of festivals in October and November.
Still news of China buying up to 40,000 tonnes of US soyoil the previous day stirred some fears that less palm oil may be snapped up as the colder season approaches. The benchmark November crude palm oil contract on Bursa Malaysia Derivatives Exchange rose 46 ringgit to settle at 2,674 ringgit ($855.7) per tonne, a level unseen since Aug 17.
Malaysian financial markets are likely to trade half a day on Thursday, ahead of the Eid al-Fitr festival that is expected to fall on Friday, traders said. Soyoil for September delivery on the Chicago Board of Trade fell almost 1 per cent during Asian hours, while the most active May soyoil contract on China's Dalian Commodity exchange rose 0.3 per cent.
In Indonesia, Refiners in Jakarta sold refined, bleached, deodorized (RBD) palm olein -- used as cooking oil -- at 8,600 rupiah ($0.954) per kg, against 8,400-8,500 rupiah per kg on Tuesday. -Reuters
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