Palm Oil futures shows extension of gain for another session
MALAYSIA, Oct. 16 – Malaysian palm oil futures hovered above MYR 3,600 ($760.14) per ton, extending gains from the prior session while escaping from a near 4-month low of around MYR 3,500 hit earlier in the week, amid a weaker ringgit and improving demand from China in the wake of the Golden Week break.
Interestingly, orders from India strengthened ahead of the Diwali festival.
Contracts are heading for a near 3% jump weekly, with concerns about supply pressures easing after top exporter Indonesia clarified that it would not make exports mandatory via a new exchange in Jakarta, Trading Economics reports.
On cargo surveyors’ data, shipments of Malaysian palm oil products for Oct. 1-10 rose 12.5% to 29.6% mom.
Separately, palm oil stocks at the end of September rose 9.6% to 2.31 million tons, the highest in 11 months, according to the Malaysian Palm Oil Board.
Limiting the upside momentum was a buildup of stocks and pressure from edible oils.
