Malaysian palm oil futures jumped on Monday, boosted by expectations of tightening supplies and strong demand led by biodiesel consumption.[SINGAPORE] Malaysian palm oil futures jumped on Monday, boosted by expectations of tightening supplies and strong demand led by biodiesel consumption.
The benchmark January palm oil contract on the Bursa Malaysia Derivatives Exchange gained 1.1 per cent, or RM26, to RM2,487 per tonne by the midday break. "The supply scenario is pretty bullish for prices next year," said one Kuala Lumpur-based trader."We have the biodiesel story which could lead to higher supplies being diverted to make biodiesel."
Top palm oil industry analysts on Friday revised up their price outlook for the edible oil, pointing to reduced production and optimism that Indonesia's so-called B30 biodiesel programme will help bolster demand.Dorab Mistry at an industry conference in Nusa Dua said that Malaysian palm oil output in 2020 was expected to be lower than 2019, due to dry weather and fertiliser cuts.
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