Malaysian Palm Oil Futures Close higher Amid Increase Demand From India

palm oil

Malaysian Palm Oil  futures closed higher after volatile trading on Tuesday, helped by a surge in exports between Sept. 1 and 20 amid increased demand from India biggest buyer ahead of the country’s key festival.

The underlying Palm Oil contract for December delivery on the Bursa Malaysian Derivatives Exchange rose MYR39, or 1.05%, to MYR3,739 ($820.68) a tonne, ending a three-session loss.

The contract fell 1.86% earlier as traders took profits.

According to a Kuala Lumpur trader, the market is trading both ways with a weaker ringgit and expectations of higher exports in September.

Malaysian exports of palm oil products rose by 31-39% from September 1 to 20 compared to the same week in August, cargo inspectors said.

Indonesian palm oil producers are cutting back on their massive stocks compared to competitors with discounts and aggressive sales where demand  is picking up in india  for next month’s Diwali festival, industry officials say.

Dalian’s most active soybean oil contract fell 1.6%, while palm oil fell 3.2%. Prices for soybean oil on the Chicago Mercantile Exchange fell by 0.2%.

Palm oil is being affected by fluctuations in the prices of related oils as they compete for share of the global vegetable oil market