KUALA LUMPUR, Sept 26 (Reuters): Malaysian palm oil futures hit a five-month high, surging more than 2 per cent on Thursday's close, driven by high demand from India and worries about production supply in major palm-producing countries.
The benchmark palm oil contract FCPOc3 for December delivery on the Bursa Malaysia Derivatives Exchange rose 109 ringgit, or 2.7 per cent, to 4,152 ringgit ($1,002.90) a metric ton at closing, the highest close since April 15.
The contract has risen 11 per cent over the last seven sessions.
Robust demand from India, driven by domestic consumption and restocking prior to the festive season, is keeping palm oil prices high alongside concerns about the stagnant to declining palm oil production in Malaysia and Indonesia due to current weather conditions, Marcello Cultrera, a grains, oilseeds and softs broker for SSY Global, said.
"As the northeast monsoon season approaches and the production cycle slows, there are growing worries about reaching a production peak in October."
On Wednesday, the ASEAN specialised meteorological centre reported that wetter conditions are expected for most of the equatorial region between September 30 and October 13.
Indonesia and Malaysia, the world's largest palm oil producers, account for around 85 per cent of the world's exports.
Palm hits five-month high on India demand, supply worries
FE Team | Published: September 27, 2024 00:39:57
Palm hits five-month high on India demand, supply worries
Share if you like