Crude palm-oil futures on Malaysia’s derivatives exchange rose to a one-week
high on Wednesday as higher export demand and technicals-driven buying offset
concerns about Cyprus.
Palm-oil prices rose 1.4% earlier to 2,448 ringgit a ton–a level not seen
since March 11–after cargo surveyors Intertek Agri Services and SGS (Malaysia)
Bhd., said March 1-20 shipments showed a monthly gain of 11% and 14%,
respectively.
The benchmark June contract at Bursa Malaysia Derivatives ended at
MYR2,441/ton–up 1.1% from Tuesday's close.
"Should export demand continue to go up for the rest of March this will help
reduce stockpiles [in Malaysia]," a trading executive at a commodities brokerage
in Singapore said.
Data from cargo surveyor SGS showed that refined palm olein shipments nearly
doubled to 501,177 tons during March 1-20 which helped to offset a 56% drop in
crude shipments. CPO shipments are lower after Malaysia set export tax for the
crude grade at 4.5% after two consecutive months of zero taxes.
Stockpiles in Malaysia–the world's No. 2 producer–rose to a record 2.63
million tons in December before easing to 2.44 million tons at end-February,
according to a March 11 report by industry regulator the Malaysian Palm Oil
Board.
The near term technical trend for palm oil is up with upside target tipped at
MYR2,467/ton, HLIB Futures said in a weekly technical report.
Palm oil's rally beyond MYR2,467/ton will signify a larger rally with the
next resistance at MYR2,500/ton, it said.
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