KUALA LUMPUR (Aug 28): Malaysian palm oil futures rose over 1% on Tuesday morning, supported by a bullish price outlook by an analyst at an industry conference in Kuala Lumpur.
The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange was 1.6% higher at RM2,233 a tonne at the midday break.
Trading volume stood at 17,380 lots of 25 tonnes each at noon.
"The market is up on Mielke's comments," said a futures trader in Kuala Lumpur, referring to key industry analyst Thomas Mielke, who forecast that prices of the edible oil had already reached their lower limit at RM2,100, and could move up to RM2,500 in the next six months.
Speaking at an industry conference here on Tuesday, Mielke also said he expects Malaysia's palm oil production to dip this year due to lower yields. However, production is likely to increase in 2019.
Industry players said palm oil output is likely to rise in coming months in line with the seasonal trend, but could ease on-year as production normalizes on a recovery from dry weather conditions due to an El Niño event.
Malaysia produced 19.92 million tonnes of palm oil in 2017.
In other related oils, the Chicago December soybean oil contract was down 0.01%, while the January soybean oil contract on China's Dalian Commodity Exchange was down 0.07%.
The Dalian January palm oil contract was up 0.3%.
Palm oil prices are influenced by the performance of other edible oils as they compete for a share in the global vegetable oils market.
Palm, soy and crude oil prices at 0619 GMT
|MY PALM OIL||SEP8||2191||+25.00||2172||2194||410|
|MY PALM OIL||OCT8||2213||+32.00||2191||2214||2254|
|MY PALM OIL||NOV8||2233||+34.00||2210||2234||8786|
|CHINA PALM OLEIN||JAN9||4890||+14.00||4844||4898||226782|
|CBOT SOY OIL||DEC8||28.76||+1.70||28.7||28.93||4946|
|INDIA PALM OIL||AUG8||592.90||+1.70||592.00||594||263|
Palm oil prices in Malaysian ringgit per tonne
CBOT soy oil in US cents per pound
Dalian soy oil and RBD palm olein in Chinese yuan per tonne
India soy oil in Indian rupee per 10 kg
Crude in US dollars per barrel
(US$1 = 70.0900 Indian rupees)
(US$1 = 6.8740 Chinese yuan)
(US$1 = RM4.1050)