MARKET DEVELOPMENT
Palm Oil Extends Gains
Palm Oil Extends Gains
10/10/2013 (The News International) - Malaysian palm oil futures climbed to their highest in four weeks on Wednesday as investors bet a key industry report may show palm stocks and output growth in September were smaller that initially anticipated.
Industry regulator the Malaysian Palm Oil Board (MPOB) will release official data on September’s palm stocks, production and exports in the world’s second-largest grower on Thursday.
The market has been buoyed by a Reuters survey on Monday that put end-September stocks at a six-month high of 1.91 million tons, but still below some earlier estimates.
“There’s some position-squaring ahead of the MPOB report,” said a Malaysian trader with a local commodities brokerage.
“But it looks like the current prices have factored in most of the bullish news. I anticipate the upside will be capped between 2,360-2,370 ringgit until more is known about September’s production,” the trader added.
Industry regulator the Malaysian Palm Oil Board (MPOB) will release official data on September’s palm stocks, production and exports in the world’s second-largest grower on Thursday.
The market has been buoyed by a Reuters survey on Monday that put end-September stocks at a six-month high of 1.91 million tons, but still below some earlier estimates.
“There’s some position-squaring ahead of the MPOB report,” said a Malaysian trader with a local commodities brokerage.
“But it looks like the current prices have factored in most of the bullish news. I anticipate the upside will be capped between 2,360-2,370 ringgit until more is known about September’s production,” the trader added.