propelled by crude oil’s advance to US$81 (US$1.00 = RM3.40) a barrel
and expectations of strong food demand in the first quarter of this
year.
Palm oil prices extended gains on the first trading day
of 2010 after posting their largest annual climb in more than a decade
last year and traders say festival demand from China will boost the
market further.
The benchmark March contract on the Bursa
Malaysia Derivatives Exchange closed RM17 higher at RM2,680 after
rising as high as RM2,698.
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Trade was light at 7,587 lots of 25 tonnes each compared to the usual 10,000 lots.
“A correction across all commodity markets is rather unlikely now with
oil prices steadily moving up,” said a trader with a foreign
commodities brokerage.
“For palm oil, the major trend is the
Chinese stocking up for the Lunar New Year due in the middle of next
month.” Last month’s exports, which fell by more than a tenth to around
1.2 million tonnes, have shown little sign of increased demand from
China.
January’s opening palm oil stocks are expected to hover
below 2 million tonnes as production probably fell due to longer
holidays and rains hitting yields in key oil palm growing regions.
Crude oil hit US$81 a barrel, lifting other vegetable oil markets. US
soyoil for January delivery climbed nearly 1 per cent in Asian trade.
Source : Business Times
