Crude palm oil futures up on exports recovery

Malaysian palm oil futures climbed 1.5 per cent yesterday as exports were seen recovering, although expectations of higher US soya plantings in a report due later yesterday could weigh on global vegetable oil prices.

Prices of palm oil have risen 18 per cent in the first quarter of 2009 on higher crude oil prices and lower output, but have failed to remain above the RM2,000 level on lacklustre exports.

The benchmark June contract on the Bursa Malaysia Derivatives Exchange settled up RM30 at RM2,000 per tonne after going as high as RM2,002.

“Exports were not too bad, the market appears to be in range-bound trading but it may fall if market expectations of higher soya plantings are met when the report comes out later yesterday night,” said a trader with a foreign commodities brokerage.

Other traded months rose between RM18 and RM55. Overall volume was 9,742 lots of 25 tonnes each.

Exports of Malaysian palm oil products for March fell 0.5 per cent to 1,163,008 tonnes from 1,168,539 tonnes shipped in February, cargo surveyor Intertek Testing Services said yesterday.

But another surveyor, Societe Generale de Surveillance, reported 5.4 per cent increase to 1,223,716 tonnes in March.

In the physical market, palm oil for March and April was quoted at RM2,110 and RM2,120 per tonne in the southern region while trades were done at RM2,120.