Malaysian Palm oil futures were trading above the MYR 4,100 per tonne mark in December, as signs of strong export demand sent investors rushing to open new positions.
Exports of Malaysian palm oil products for Dec. 1-25 rose 2.6% from a month earlier to 1,224,122 tonnes, cargo surveyors’ data showed.
On top of that, top buyer China relaxed its coronavirus restrictions further, raising hopes of a recovery in the world’s second-largest economy while offering an upbeat outlook for demand.
Meanwhile, investors continued to mull the European Union’s move to stop companies from selling commodities linked to deforestation into its market.
Palm oil is now down more than 10% in a rollercoaster 2022 that saw the Malaysian benchmark hit a record high of MYR 7,300 in March on the back of tight supply due to the drought season in South America and supply bottlenecks for sunflower oil in the Black Sea region.