17/4/07 (The Financial Times)  -  Palm oil futures rose to the highest in more than eight years on concern that supply may lag behind demand following estimates of higher-than-expected exports from Malaysia, the world’s largest producer of the commodity.

Malaysia exported 29% more palm oil during April 1-15 than a month earlier, according to estimates by independent cargo surveyor Societe Generale de Surveillance. A total of 6,42,492 metric tonne of bulk palm oil shipments through Malaysian sea ports were tracked, compared with 4,96,977 tonne of palm oil in the same period last month, SGS said.
 
“The exports are very strong and palm oil futures are responding to that,’’ Francis Lee, trader at Okachi (Malaysia) Sdn Bhd, said by phone from Kuala Lumpur on Monday.

Palm oil for June delivery, the most active contract, rose as much as 88 ringgit, or 4%, to 2,307 ringgit ($671) a tonne on the Malaysia Derivatives Exchange. That’s the highest since December 1, 1998, when it touched 2,311 ringgit. The contract traded at 2,270 ringgit at 5:15pm local time.

Earlier on Monday, another independent cargo surveyor Intertek Malaysia said the country’s palm oil exports rose 47% in April 1-15 to 6,66,793 tonne from 4,54,791 tonne a month ago.

Lower import taxes by the country, the world’s second-biggest vegetable oil buyer, may also bolster gains in palm oil prices in Malaysia and soybean oil in Chicago.

—Bloomberg