Malaysian Palm oil futures rose to the MYR 3,890 per tonne level on Tuesday, rebounding from the two-month low of MYR 3,737 touched on December 12th, lifted by a weaker ringgit and the slight recovery in crude oil prices, raising demand for vegetable oils as biofuel feedstock.
In the meantime, data from cargo surveyors pointed to a 5.6%-14.6% jump in Malaysian palm oil exports in the first 10 days of December compared to the previous month, underscoring robust demand.
Also, output in top producer Indonesia is expected to lower in the next marketing year as seasonal storms in Southeast Asia hampered crops, according to the USDA’s WASDE report.
To limit the rebound in prices, the EU agreed to set mandatory rules for companies selling a series of products, including palm oil, to ensure that its raw materials are not derived from deforested land.
