Palm Oil Surge to a 9-week high of 4279 MYR/T, as a weaker ringgit and concerns about tight global supplies offset prospects of sluggish demand.
The benchmark palm oil Surge contract for January delivery on the Bursa Malaysia Derivatives Exchange gained 222 ringgit, to 4,279 ringgit ($886.33) a tonne.
It had earlier risen 5% on global supply concerns after Russia on Saturday suspended participation in a UN-brokered Black Sea grain deal.
The move is likely to hit shipments to import-dependent countries, deepening a global food crisis and sparking gains in prices.
Clouds of uncertainty loom over exports of sunflower oil from Ukraine after Russia withdrew from a Black Sea export deal amid tensions between the two countries.
In domestic markets, storms and a high risk of flooding during the monsoon season, usually between October and January, sparked concerns about disrupted harvesting activities, which could hurt production in the world’s second-largest palm producer.
Keeping a lid on prices was lingering worries about weak demand, particularly from China, the world’s top consumer, amid persistent coronavirus-induced restrictions.
While Soybeans increased to a 4-week high of 1414 USd/Bu, after Russia announced that it was suspending its involvement in the Black Sea Grain Initiative, which allowed vital agricultural products to be exported from several Ukrainian ports. \
According to Russia’s Foreign Ministry, Moscow is exiting the grain deal for an “undetermined period.” Meantime, authorities in Kyiv accused Moscow of creating a “false pretext” to block the grain corridor. Still, the cost of soybeans remains below its June peak of around $18