Palm | Kelapa Sawit

Palm oil futures rallied broadly higher as lower stocks outweigh poor export. The released of supply & demand data by MPOB which shows that stock level in July fell 5.67% to 1.32 million tones was significantly below market expectations as Reuters poll predicted a 3.7% decline to 1.35 million tones last week. Benchmark Oct09 rose steadily through out most of the sessions and hit intra day high of 2424 before it ended RM60 higher at 2400. Players had ignored the weak export data by private cargo surveyors ITS that had reported a decline of 12.6% on the first 10 days of Aug compared with last month corresponding period. On the other side, the bullish external vege oil markets also enhanced the buying activity in local BMD. Dalian palm ended strongly higher after it gained more than 4% while eCBOT soy oil also edged higher during Asian time trading.