The benchmark May contract on the Bursa Malaysia Derivatives Exchange rose RM216 to a record RM3,914 a tonne a tonne
MALAYSIAN palm oil futures soared 6 per cent to a new high today, tracking gains in rival soyoil and on expectations that a key palm oil conference this week will set bullish price forecasts. Talk that India, the second-largest vegetable oils buyer, could slash import duties on edible oils this week to rein in inflation also helped push prices to record highs. The benchmark May contract on the Bursa Malaysia Derivatives Exchange rose RM216 to a record RM3,914 a tonne (US$1,217) a tonne. By the mid-day break, the contract had settled up RM207 at RM3,905 a tonne. "It may hit RM4,000 this week but certainly not today," said a head trader at a foreign brokerage in Kuala Lumpur. Other traded months rose between RM110 and RM206. Overall trade stood at a normal 5,414 lots of 25 tonnes each. Bursa Malaysia will hold the annual palm oil conference from February 25-27 and dealers expect bullish outlooks from top analysts such as Dorab Mistry, James Fry and Thomas Mielke on palm oil. "The market is a little bit overbought. We may see some profit-taking toward the close today," said another dealer in Kuala Lumpur. - Reuters
