06 July 2017
Futures Climb to Near 6-Week High on India Demand Bets

Palm oil for Sept. delivery rises as much as 0.8% to 2,559 ringgit/ton on Bursa Malaysia Derivatives, highest for most-active contract since May 26.

  • Futures +0.5% at 2,550 ringgit by 4:14pm in Kuala Lumpur, up 4th day; -18% YTD
  • Palm oil supported by Indian demand and gains in Dalian markets, according to Rajesh Modi, trader at Sprint Exim in Singapore
    • There is demand for palm oil in India as discount to soyoil and other oils is high: Modi
    • There are also concerns whether palm oil can hold gains as there’s speculation of a big jump in July production in Malaysia
  • Sept. refined palm oil on Dalian Commodity Exchange closes +1.4% at 5,412 yuan/ton; Sept. soybean oil +0.8% to 5,994 yuan/ton
  • Soybean oil for Dec. delivery on Chicago Board of Trade -0.4% to 33.56c/lb; Nov. soybeans on CBOT -0.4% at $9.90 1/2/bu
  • Soybean oil’s premium over palm oil ~$147/ton vs avg ~$106 over past year: data compiled by Bloomberg
  • Palm oil’s premium over gasoil at ~$149/ton vs avg ~$180 over past year: data compiled by Bloomberg


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