Wrong time to be in Malaysian Crude Palm Oil Market at FinGad.com

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Wrong time to be in Malaysian Crude Palm Oil Market

Categorie: Commodities
Submitted 3 months ago by

Noor-us-sabbah , Senior Editor at FinGad

Against all predictions of stagnant demand and bearish trends, Malaysian crude palm oil futures again rose 1 percent on Monday June 17, 2008. The benchmark, Malaysian crude palm oil’s September future contract on the Bursa Malaysia derivative Exchange closed at 3727 ringgit per ton (which is equal to $1140). The benchmark contract even rose to 3750 ringgit per ton earlier on Monday. The main reason behind this price rally was the fact that international soy oil markets also gained momentum due to bad weather forecast for the soybean crop. Market feared that floods in the Midwest would severely smash up the soybean crop. US soy oil for July delivery jumped 1.5 per cent in Asian trade on Monday. As a result, o.3 percent increase was observed in the most-active September soy oil contract on China’s Dalian Commodities Exchange. Consequently, many traders entered the crude palm oil future contracts in order to make profits if soy oil production could not meet the demand due to bad weather in the coming days. That is why the benchmark September contract even touched the 3750 ringgit per ton mark. Later, stagnant demand for tropical vegetable oil put an end to this price-hike and weighed on the market. Moreover, the crude oil factor also came into play. ... More...

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1 comments ↓

#1 | Liz @ 3 months ago User Rank : 662 Portfoilo Balance: $216,918.00 Comment Rating: 0 Flag Comment Spam | Miscategorized | Prohibited: Bad timing, bad weather. Hopefully Malaysian palm oil still can survive.

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