SINGAPORE, Aug 16: Malaysian palm oil futures climbed on Friday to the highest in more than a month and were poised to post the best weekly performance thus far this year, as rising exports boosted investor optimism.
Malaysian palm oil exports for the Aug. 1-15 period rose 17.7 percent from the same period a month ago to 644,589 tonnes, cargo surveyor Intertek Testing Services said on Thursday.
Another surveyor, Societe Generale de Surveillance, reported an increase of 18.7 percent for the same period.
The latest end-stocks report by industry regulator Malaysian Palm Oil Board (MPOB) which indicated July levels were only 1 percent higher than the previous month’s despite strong production also supported views for a robust demand.
‘This (the MPOB report) suggested a good sign … Demand is partly fuelled by near-record biodiesel exports and growing demand for biodiesel for local consumption as crude oil prices continue to advance,’ said Singapore-based Phillip Futures in a note on Friday.
By the midday break, the new benchmark November contract on the Bursa Malaysia Derivatives Exchange had gained 1.4 percent to 2,331 ringgit ($711) per tonne. Prices earlier touched 2,336 ringgit, a level last seen on July 12.
Total traded volume stood at 13,403 lots of 25 tonnes each, slightly higher than the usual 12,500 lots.
Thus far in the week, the benchmark contract was up 5.6 percent, its best performance so far this year.
The tropical oil is expected to pause or peak around a resistance of 2,348 ringgit per tonne, as indicated by its wave pattern and a Fibonacci ratio analysis, said Reuters analyst Wang Tao.
Malaysia, the world’s No.2 palm oil producer has set its crude palm oil export tax for September at 4.5 percent, unchanged since March, a government circular showed on Friday.
In other markets, Brent crude slipped towards $109 a barrel on Friday, snapping five days of gains as investors worried the Federal Reserve would soon start to trim its commodity-friendly stimulus, but escalating unrest in Egypt supported prices.
In vegetable oil markets, the U.S. Soyoil contract for December gained 0.4 percent in early Asian trade. The most-active January soybean oil contract on the Dalian Commodities Exchange rose 1.5 percent. (AGENCIES)
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