MARKET DEVELOPMENT
Palm Oil Climbs for Fourth Day With Production, Exports in Focus
Palm Oil Climbs for Fourth Day With Production, Exports in Focus
07.09.2021 (www.bloomberg.com) - Palm oil advanced for a fourth day as Malaysian production dropped and exports soared.
The tropical oil rose 1.4% to close at 4,392 ringgit per ton in Kuala Lumpur, capping the longest streak of gains in two months. Rival soybean oil added 0.4% in Chicago.
Palm oil is bolstered by data showing that production from Malaysia’s southern peninsula shrank 25% in the first five days of September from the previous month, said Anilkumar Bagani, research head of Mumbai-based Sunvin Group. Expectations of improving exports also aided sentiment, he added.
Shipments from Malaysia, the second-biggest grower, jumped almost 90% in the first five days of September from a month earlier, according to Intertek Testing Services. That’s an early sign of a turnaround after August exports fell about 16%.
Palm oil is expected to remain elevated through the rest of 2021 to average about 4,000 ringgit a ton, according to Malaysian Palm Oil Board’s director-general Ahmad Parveez Ghulam Kadir. So far this year, prices have averaged 3,876 ringgit.Toward year-end, a pick up in production is expected to boost stockpiles. This may lead to a correction in prices, he said at a conference Tuesday.
https://www.bloomberg.com/news/articles/2021-09-07/palm-oil-climbs-for-fourth-day-with-production-exports-in-focus