By Feiwen Rong, Bloomberg
Singapore: Palm oil futures in Malaysia, the world’s largest grower last year, rose to their highest in more than eight years after an estimate of higher exports of the commodity from the Southeast Asian nation.
The country exported 8.1% more palm oil in the first 10 days of May than a month earlier, independent cargo surveyor Intertek said today. A total of 463,865 tons were shipped compared with 428,985 tons last month, it said.
Demand for palm oil is surging, especially in China and India, the world’s two most populous nations. The price of the commodity, used in foods, as a cooking oil and as an alternative fuel, has gained 60% over the past year.
The “strong exports figure is the main contributing factor in today’s rally” Lucy Tong, trader at HLG Futures said from Kuala Lumpur today. “It showed there’s a lot of demand out there.”
Palm oil for July delivery, the most active contract, rose as much as 24 ringgit, or by 1.1%, to 2,315 ringgit ($680) a ton on the Malaysia Derivatives Exchange. That’s the highest since 30 November 1998, when the price touched 2,316 ringgit.