21/07/2017 (The Star Online) - KUALA LUMPUR: Malaysian palm oil futures surged 2 percent on Thursday, rising to a one-week high and recovering from a two-week low hit in the previous session, on the back of strength in related edible oils.

Cargo surveyor data showing rising export demand and forecasts of stronger demand from China also supported the market, said traders.

China is expected to import 450,000 tonnes of palm oil per month in August and September, compared with a forecast of 250,000 tonnes for July, according to a report by the China National Grain and Oils Information Center (CNGOIC).

Chinese traders booked seven palm oil cargoes of around 80,000 tonnes on Tuesday due to lower prices in overseas markets, CNGOIC said.

As prices in overseas markets further weaken and futures on China's Dalian Commodity Exchange remain strong, local traders are expected to book more cargoes and domestic palm oil stocks
will start growing in August, it added.

The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange was up 2 percent at 2,576 ringgit ($600.47) on Thursday evening, its strongest daily gain in nearly four months.

The market earlier hit an intraday high of 2,578 ringgit, its highest level since July 12.

Traded volumes stood at 33,824 lots of 25 tonnes each at the close of trade.

"Dalian and soyoil edged higher," said a Kuala Lumpur-based futures trader, referring to related edible oils on the Dalian and soyoil on the Chicago Board of Trade.

"Exports and news on China's buying also supported the palm market."

Palm oil shipments from Malaysia, the world's second largest producer after Indonesia, rose 10.5 percent during July 1-20 compared with a month earlier, according to data from cargo surveyor Intertek Testing Services.

In other related oils, the December soybean oil contract on the Chicago Board of Trade was up 0.8 percent, while the September soybean oil on the Dalian Commodity Exchange rose 1.1 percent.

The September palm olein contract gained 1.2 percent. - Reuters