Tuesday, November 25, 2014

Malaysia Palm Oil Futures Rise - Hope for Golden Agri and Wilmar?

Malaysian palm oil futures rose on 25 Nov 2014, moving away from the one-month low.  It closed at RM2,218 as compared to the 28 Oct low of RM2,187.  Palm oil output rose 2.4% between 1 Nov to 20 Nov compared with a month ago, lifted mainly by a 9% increase in yields in Sabah.  Oil palm is a big thing in Malaysia.

Low palm oil prices have caused stocks like Golden Agri-Resources, Bumitama, First Resources, Wilmar, etc to drop in their share price over the past few month.  Export demand is expected to remain weak for the rest of November according to a Singapore-based palm oil trader.

In other competing vegetable oil markets, the US soyoil contract for December fell 0.5% while the most active May soybean oil contract on Dalian Commodities Exchange rose 0.1%.  Soyoil usually trades at a slight premium to palm oil.

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