MALAYSIAN crude palm oil hit a 29-month high yesterday as a weaker dollar spurred
risk-taking and on spillover support from wheat prices, which are
being bolstered by concerns over Australia’s grains output.
The
dollar was on the defensive yesterday after the US Federal Reserve said
it was open to injecting more funds into the economy.
Palm oil
has climbed by more than a third this year, with the biggest weekly
gain so far this year last week on bullish forecasts from key industry
analysts at an Indonesian conference and erratic weather hitting grains
and oilseed regions.
Heavy rains in Australia have sparked concerns about the quality of wheat supplies, lifting US wheat futures and supporting other agricultural commodities.
market expectation of palm oil stocks falling in November added to the
rally on tight grain supplies and the weaker dollar,” said a trader
with a foreign commodities brokerage.
The Malaysian crude
palm oil contract jumped 2.8 per cent to RM3,618 a tonne, a level
unseen since July 4, 2008, before settling at RM3,610.
Traded
volume more than doubled from normal to 27,666 lots at 25 tonnes each
on short covering ahead of a Malaysian public holiday on today.
Malaysia’s
palm oil stocks probably fell in November from nine-month highs hit
the previous month as output declined on heavier rains and exports
climbed, a Reuters poll showed on yesterday.
Source : Business Times
