JAKARTA, March 13: Malaysian palm oil futures jumped nearly 3 per cent on Thursday as investors took their cue from a rebound in the soyaoil market and on Beijing’s plans to increase the volume of cooking oil held in state food reserves, traders said.
Indonesian palm oil prices rose on Thursday, tracking gains in Malaysia’s market but trade was still cautious over concerns prices could tumble again.
The state marketing centre in Jakarta failed to sell 6,000 tons at auction on Thursday due to low bids.
But producers in North Sumatra’s Medan sold crude palm oil at 9,960 rupiah ($1.08) a kilogram, up from 9,880 rupiah a kg on Wednesday.
Malaysia gained today. But buyers have been very cautious because the market is still volatile, said a dealer at a plantation company in Medan, the country’s key port for palm oil exports.
The benchmark May contract rose as much as 110 ringgit to 3,875 ($1,228) ringgit a ton before settling up 33 ringgit at 3,798 ringgit a ton.
In Jakarta, the price of refined, bleached, deodorised (RBD) palm olein — used as cooking oil — was quoted higher at 10,950 rupiah a kilogram from 10,700 rupiah a kg on Wednesday, tracking gains in Malaysia, one cooking oil dealer said.
On the export front, crude palm oil for delivery in July to September was offered at $1,210 a ton, free on board Belawan, but buyers did not bid for the shipment.—Reuters
