Palm oil trading  stayed around 4,000 as weak ringgit and high demand

Malaysian Palm Oil Futures

Malaysian Palm oil trading were trading above the MYR 4,000 per tonne mark, recovering from a one-month low of around $3,800, buoyed by brisk export demand and a weaker ringgit.

Exports from Malaysia during November 1-20 jumped between 2.9% and 9.6% from the same period in October, cargo surveyors’ data showed.

However, rising output, with Malaysia and Indonesia entering the peak production months of October and November, coupled with concerns about weaker demand, particularly from top consumer China amid renewed coronavirus-induced restrictions, limited further gains.

On top of that, Indonesia’s exports remain more competitive than Malaysia’s, following the former’s extended palm oil trading levy waivers.

Earlier Malaysian palm oil trading climbed on Tuesday, extending a rebound from more than a one-month low, supported by stronger rival vegetable oils and crude oil as market participants awaited Malaysian palm oil output data.

The benchmark palm oil contract for February delivery on the Bursa Malaysia Derivatives Exchange gained 160 ringgit or 4.15% to 4,015 ringgit ($877.60) per tonne in by midday.

“Techincal rebound is due to oversold… and as external markets mostly higher… market waiting for Nov. 1-20 production figure,” a Kuala Lumpur-based trader said