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Palm oil hits 1-month high

Palm oil hits 1-month high

KUALA LUMPUR: Malaysian palm oil futures reached a one-month high on Tuesday, buoyed by a weak ringgit currency and higher demand from refiners on improving margins.

The benchmark November contract on the Bursa Malaysia Derivatives exchange closed higher by 2.1 per cent at 2,090 ringgit ($481.68) a tonne after reaching 2,100 ringgit, its highest since Aug. 3. Traded volume stood at 37,731 lots of 25 tonnes each, above the daily average of 35,000 lots.

“The direct impact of palm oil prices today is from the weakening of the ringgit,” said a trader based in Kuala Lumpur. “Another reason is we’re seeing fairly good demand, as refining margins have improved very much. We’ve not seen these margins of 250 ringgit today for quite some time.”

The ringgit had shed 0.3pc on Tuesday, ending the day at 4.3390 against the dollar. It has plunged more than 20pc this year as emerging Asia’s worst performing currency.

Published in Dawn, September 9th, 2015

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