KAULA LUMPUR: Palm oil increased to a 6-week high of 3945 Riggint / Tonne , buoyed by a weak ringgit and concerns over supply disruption as Russia threatened to pull out of an agreement on Black Sea grain exports.
Expectations of a drop in Southeast Asian palm oil production and supply from November to February due to potential La Nina weather disruption also supported prices.
Meanwhile, exports of Malaysian palm oil products for October 1-15 fell 4% from the same period in September, according to cargo surveyor Intertek Testing Services (ITS) Saturday.
While benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange rose 0.31% to close at 3,878 ringgit per tonne, after declining as much as 2.33% earlier in the day. It had gained 4.6% on Friday.
The recovery was triggered by higher soyoil prices on the Chicago Board of Trade, a trader in Kuala Lumpur said.
CBOT soyoil prices rose 0.8%. Meanwhile, Dalian’s most-active soyoil contract was down 1.26%, while its palm contract traded 0.84% highe
Russian government allocates about 5 billion rubles. to stimulate the production of oilseeds. Sunflower oil exports may increase by 70% by the end of the season. Thus, Russia becomes the No. 1 exporter of this product. Aif.ru tried to figure out what this would give Russia.
Prime Minister Mikhail Mishustin said at a government meeting that Russia is moving from fifth to first place in the world in the export of sunflower oil. This year, the volumes of butter produced in the country will exceed the norms of the Food Security Doctrine by more than two times, reaching 200%.