Pakistan News

Palm oil hits 2-week high

Palm oil hits 2-week high

KUALA LUMPUR: Malaysian palm oil futures hit their highest level in nearly two weeks on Tuesday as the ringgit continued to weaken near 1998 lows, although declines in competing markets dragged on appetite for the edible oil.

By the close on Tuesday, the benchmark palm oil contract for November on the Bursa Malaysia Derivatives Exchange had lost 0.68 per cent to 2,058 ringgit ($503.67) a tonne, after hitting 2,069 ringgit, the highest since Aug 5.

Traded volume stood at 52,024 lots of 25 tonnes each, above the roughly 35,000 lots usually traded by the close.

The ringgit gave some support to the tropical oil as the benchmark palm is priced in the local currency, traders said, noting that the benchmark was trading in a range.

Palm futures fell for a seventh consecutive week last week, after data showed a build-up in Malaysia’s stocks due to higher production and a slowdown in demand.

Wang Tao, a Reuters market analyst for commodities technicals, said palm oil faces a resistance at 2,052 ringgit per tonne and may either hover below this level or retrace to a support at 2,017 ringgit.

Published in Dawn, August 19th, 2015

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