Palm Oil Extends Gains On Strong Indian Demand And Weak Ringgit
Palm oil advanced for a second day thanks to strong demand from the world’s biggest buyer, India, and a weaker Malaysian currency, which made the tropical oil more attractive for overseas buyers.
(Bloomberg) -- Palm oil advanced for a second day thanks to strong demand from the world’s biggest buyer, India, and a weaker Malaysian currency, which made the tropical oil more attractive for overseas buyers.
Indian traders have been very active in the last two days, said Paramalingam Supramaniam, a director at Selangor-based broker Pelindung Bestari. The physical market was seeing a jump in interest because of relatively low prices for palm than for rivals like soy oil, he said.
Also supporting prices is speculation that supply may be tightening in the world’s largest producer, Indonesia, after its exports of crude palm oil and its derivatives fell in July. Overseas shipments dropped more than 39% from June to 1.62 million tons last month, according to the nation’s statistics office.
Benchmark palm oil futures in Kuala Lumpur edged up to 3,738 ringgit a ton, after closing at 0.9% higher the previous day.
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