KUALA LUMPUR (April 5): Malaysian palm oil futures surged to their highest in six weeks on Friday evening, charting a fifth straight session of gains, on expectations of dwindling stockpiles and improved exports.
The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange was up 0.9% at 2,224 ringgit (US$544.16) a tonne at the close of trade.
It earlier rose 1.4% to 2,235 ringgit, its highest since Feb 25.
Palm is up this week by 5.6%, a second weekly gain in three.
A futures trader in Kuala Lumpur said the market jumped in the evening, on expectations of higher exports in April.
Palm oil futures had risen this week on expectations that March data from industry regulator, the Malaysian Palm Oil Board, to show a decline in inventory levels.
Malaysia's palm oil stockpiles are likely to have dropped during March to its lowest level in five months, according to a Reuters survey, as a hefty jump in exports outpaced production gains.
March inventories are expected to have fallen 6.4% from February to 2.85 million tonnes, the lowest since October 2018, while exports are pegged to come in at 1.63 million tonnes, a 23.4% rise from the previous month.
The Malaysian Palm Oil Board is scheduled to release March data on April 10.
Malaysian palm oil stockpiles rose to their highest in nearly two decades in December, and last increased unexpectedly in February by 1.3% to 3.05 million tonnes.
In other related oils, the Chicago May soybean oil contract was up 0.2%.
Palm oil prices are affected by movements in soyoil, as they compete for a share in the global vegetable oil market.
Palm, soy and crude oil prices at 1054 GMT
Contract Month Last Change Low High Volume
MY PALM OIL APR9 2160 +29.00 2120 2160 118
MY PALM OIL MAY9 2200 +29.00 2170 2212 1788
MY PALM OIL JUN9 2221 +20.00 2199 2235 19238
CHINA PALM OLEIN MAY9 0 +0.00 0 0 0
CHINA SOYOIL MAY9 0 +0.00 0 0 0
CBOT SOY OIL MAY9 29.25 +0.05 29.06 29.29 4962
INDIA PALM OIL APR9 546.80 +5.90 540.20 549.3 1355
INDIA SOYOIL APR9 743.45 +6.60 735.25 744.3 11120
NYMEX CRUDE MAY9 61.99 -0.11 61.82 62.25 111178
Palm oil prices in Malaysian ringgit per tonne
CBOT soy oil in U.S. 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 U.S. dollars per barrel
(US$1 = 4.0870 ringgit)
(US$1 = 6.7182 Chinese yuan)
(US$1 = 69.2800 Indian rupees)