Malaysian palm oil futures surpass RM3,600
By Ooi Tee Ching <mailto:By%20Ooi%20Tee%20Ching> Published: 2008/02/20 Even at such a dizzying level of RM3,625 a tonne, palm oil futures are still trading at a discount to soyaoil PALM oil futures traded on Bursa Malaysia Derivatives Exchange surpassed the RM3,600-a-tonne level yesterday on strong overseas demand to close at RM3,625. China has been buying up more palm oil since late last month after the worst snowstorms in more than 50 years damaged 3.16 million hectares, or nearly 40 per cent, of its autumn and winter rapeseed supply. Guizhou, Hunan and Jiangxi provinces suffered the most serious crop damage during the extreme weather conditions, with more than 90 per cent of rapeseed crops affected. Even at such dizzying levels, palm oil futures are still trading at a discount to soyaoil. "The soaring prices are indicative that palm oil is indeed a lifeline that feeds the world," Plantation Industries and Commodities Minister Datuk Peter Chin said when contacted yesterday. "Whatever allegations hurled at us by some environmentalists and social groups seeking to ban palm oil from entering certain consuming countries is actually exacerbating the situation," he added. Chin said that oil palm, which is grown in the world's tropical belt, has never been subjected to such massive wipe-outs as seen in China after the snowstorms. "While these environmentalists continue with the smear campaign against palm oil, soaring prices in the commodity markets show that palm oil is an affordable and reliable source of food for the world," he said
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