This is the third time this year palm oil futures pierced through the RM2,700 per tonne level.
Johor-based Kim Loong Bhd managing director Gooi Seong Heen said: “The
run-up in prices is most probably fuelled by fear of erratic weather
causing supply shortage in soyaoil.
“This month, we hope to
harvest more fresh fruit bunches but then again it depends if we can
secure enough harvesters. We appeal to the government to rectify the
situation.”
Sabah-based Kwantas Corp Bhd group managing director Steve Kwan Ngen Chung concurred with Gooi.
“It is very important for Malaysia to maintain good diplomatic
relations with Indonesia. Malaysia’s palm oil industry’s earnings could
be hurt if our government is not careful in handling the foreign worker
issue.
“We’re entering the peak fruiting season but there’s lack
of skilled harvesters. Many have gone home to Indonesia for Hari Raya.
So far, not all have returned to report for work,” Kwan said.
Co-incidentally, palm oil futures on Malaysia’s Derivatives Exchange
along with other derivatives migrated to CME Group’s Globex trading
system yesterday.
Palm oil futures in Kuala Lumpur move in
tandem with other vegetable oils traded in Chicago and Dalian in China
because palm oil and soyaoil are near-perfect substitutes. They are used
to make cooking oil, margarine and biodiesel.
In China, refined, bleached deodorised palm olein May 2011 contract also rose 4 per cent to 7,630 yuan (RM3,520) per tonne.
Over in Chicago, CME Group’s December delivery soyaoil futures
traded on Chicago Board of Trade’s Globex added 1.91 per cent to a high
of 42.71 cents a pound. Delay in harvesting of the soyabean due to
unfavourable weather condition is supporting the prices.
As
for palm oil, Chicago’s December delivery contract, which is pegged to
the Malaysian benchmark, added as much as 3 per cent to US$870.25
(RM2,698) a tonne, the highest since the exchange started trading the
contract in May.
Source : Business Times by Ooi Tee Ching
