Malaysian palm futures rose nearly 1 per cent yesterday, rebounding from a three-week low a day earlier, but fears over supplies in the world’s number-two producer and a strong ringgit capped gains, traders said.
The benchmark August contract on the Bursa Malaysia’s Derivatives Exchange rose RM23, or 0.9 per cent, to RM2,522
per tonne, after posting its biggest day-fall in more than three weeks on Thursday.
Despite the rebound, the benchmark price closed down 5.4 per cent this week, its biggest weekly loss since the end of February. Palm has struggled to hold onto gains after after rising more than 50 per cent this year.
“Prices can only move when someone starts buying and somebody starts selling on the physical side. Unfortunately, sellers don’t have cargoes to sell. In the end (the) market is just stuck like this,” said a trader at a Malaysian commodities brokerage.
The trader said unless production shows signs of improvement, price could drop further in coming weeks.
“Everybody is still trying to sell. At current prices above RM2,500, it is still good to sell,” he said.
In the Malaysian physical market, palm oil for May and June was traded at RM2,590-RM2,600 per tonne in the southern and central region. There was no trades on Thursday.
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