KUALA LUMPUR: Malaysian palm oil futures rose on Friday, achieving their first gain in three sessions, on the back of cargo surveyor data showing higher exports.
The palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange was 1.8 percent higher at 2,723 ringgit per tonne at the close of trade.
Earlier in the session, it hit a two year high of 2,726 ringgit which was previously reached on Tuesday. It has so far gained 1.4 percent this week.
Traded volumes were 38,170 lots of 25 tonnes each, lower than the daily average of 44,600 lots.
“The market is seeing a continuation of ups after the previous days’ corrections,” said a trader based in Kuala Lumpur.
“Seems like exports are holding up the market well.” Shipments of Malaysian palm oil products for March 1-25 rose 12.6 percent month-on-month, supported by higher exports to India and China, according to Intertek Testing Services (ITS).
Palm oil fell for two straight sessions through Thursday after hitting a two-year high on Tuesday on fears that El Nino would impact fresh fruit yields and lower production.
The El Nino weather phenomenon brings scorching weather across Southeast Asia, damaging crops and affecting output.
Crude palm oil output in Indonesia, the world’s top palm producer, is seen declining in February due to droughts and forest fires, according to a Reuters survey.
Crude palm oil production may drop to 2.30 million tonnes in February, according to the survey’s median estimate, down from 2.44 million tonnes in January, and the lowest since February 2015.
In competing vegetable oil markets, the September soybean oil contract on the Dalian Commodity Exchange gained 0.8 percent, and the May Chicago Board of Trade soyoil contract lost 0.6 percent.
Crude palm kernel oil’s offer price was 5,307.61 ringgit per tonne at the midday break, according to price assessments by Thomson Reuters.
