[ad_1]
KUALA LUMPUR: Palm oil futures are trading at their highest level in nearly eight months amid expectations of increased demand from China’s top buyer.
Futures in Kuala Lumpur rose for a second day, adding as much as 0.9% to RM2,918 a tonne, to trade at the highest level since January 23. Prices have risen 3.8% so far this week.
The palm oil market remains optimistic with estimates of a 12.5% increase in demand from September 1-15, mainly due to increased appetite from China as it replenishes its reserves and satisfies increased domestic demand, according to Marcello Cultrera, institutional sales manager and broker. at Phillip Futures in Kuala Lumpur.
Prices may reach their highest range of RM2,950-3,050 / t by the end of the month, although increased production may have a negative effect on prices, he said. The market will keep an eye on production data from the Malaysian Palm Oil Association, he said.
Palm oil shipments from Malaysia increased 12.4% from the previous month to 780,305 tonnes during September 1-15, according to AmSpec Agri.
Fitch Ratings forecasts that crude palm oil prices are likely to fall in the coming months as better weather conditions support yields and production in the second half.
Still, CPO prices may remain strong if the La Niña weather pattern affecting soybean yields in the Americas and a labor shortage in Malaysia could delay the harvest of palm fruits ahead of peak season. production around September, Fitch said in the Sept. 14 report. – Bloomberg
[ad_2]
