SINGAPORE, Jan 31 — Malaysian palm oil futures jumped 3 per cent to a more-than-three-month high today, supported by better-than-expected export data and dry weather concerns in key soy producing areas in Argentina.
Dry weather is starting to threaten soybean yields in parts of Argentina’s main crop belt, possibly lowering soybean oil output and turning buyers to cheaper palm oil, priced at a discount of more than US$300 (RM900).
Traders were also cheered by a reduced fall in Malaysia’s January palm oil exports of 7 per cent to 1.46 million tonnes from the previous month’s 1.57 million tonnes. That was a significant improvement from a double-digit decline earlier in the month.
By 0720 GMT, the benchmark April contract on the Bursa Malaysia Derivatives Exchange rose 3 per cent to RM2,586 per tonne, slightly off its intraday high of RM2,587, a level unseen since October 25. — Reuters