The benchmark palm oil contract for March delivery on the Bursa Malaysia Derivatives Exchange rose 23 ringgit, or 0.7%, to 3,402 ringgit ($842.91) a tonne in early trade.
“The market is anticipating negative growth production in December and improving exports,” a Kuala Lumpur-based trader told Reuters. “We are also expecting January export tax to remain at zero.”
Exports of Malaysian palm oil products during Dec. 1 to 15 rose 9.5% to 725,380 tonnes on-month, cargo surveyor Societe Generale (PA:) de Surveillance said on Tuesday. Malaysia’s palm oil end-stocks in November fell to their lowest in more than three years as production slumped and exports fell more than expected, data released by the Malaysian Palm Oil Board last week showed. supporting prices were gains in rival oils elsewhere.
Dalian’s most-active soyoil contract DBYcv1 rose 1.7%, while its palm oil contract DCPcv1 gained 0.9%. Soyoil prices on the Chicago Board of Trade BOcv1 were last flat, but saw gains overnight on South American crop concerns. oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
* Oil prices eased on Friday, but stayed within touching distance of nine-month highs hit overnight as soaring COVID-19 cases weigh on fuel demand and U.S. lawmakers continue to battle over a $900 billion economic stimulus package. O/R
* Asian stock fell slightly on Friday, failing to catch a broader global rally as the investor mood in the region shifted to broader caution about the economic outlook and as post-Brexit worries weighed. MKTS/GLOB
DATA AHEAD (GMT) 0700 Germany Producer Prices Nov 0700 Britain Retail Sales Nov 0900 Germany Ifo Business Climate New Dec 1030 Russia Central Bank Key Rate Dec 1100 Britain CBI (NS:) Trends – Orders Dec 1330 U.S. Current Account Q3 Japan JP BOJ Rate Decision
($1 = 4.0360 ringgit)