yesterday as some traders took positions ahead of a key industry conference and steady crude oil and soyoil markets.
Expectations for weak Malaysian output figures from last month as well as supportive commodity markets have made palm oil the best-performing vegetable oil market so far this year.
Benchmark May crude palm oil futures on the Bursa Malaysia Derivatives Exchange rose RM23, or almost 0.9 per cent, to RM2,635, just shy of a one-week high of RM2,638 hit on Monday.
“(We are) expecting the market to be supportive until the end of this week, no one likes to be overly bearish two days before the (Bursa Malaysia) Palm Oil and Laurics Conference,” said a trader in Kuala Lumpur, referring to a key industry meet next week.
Crude oil was steady below US$80 a barrel, giving support to most vegetable oil markets. In China’s Dalian commodities Exchange, the most traded September soyoil futures rose 0.6 per cent. US soyoil edged up in Asian hours.
One Chinese trader said trading volume in Dalian was thin as most investor has booked profits before Lunar New Year last month.
“Usually domestic demand in March is low as consumers had hoarded sufficient edible oil during Lunar New Year. So buying strength after festive season is weak,” one trader in Shanghai said.