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By Mei Mei Chu
KUALA LUMPUR, Dec 27 (Reuters) – Malaysian palm oil futures rallied more than 6% on Tuesday to hit a near three-week high, after key market China said it would further ease border controls for inbound travellers.
The benchmark palm oil contract FCPOc3 for March delivery on the Bursa Malaysia Derivatives Exchange jumped 236 ringgit, or 6.16%, to 4,066 ringgit ($920.33) a tonne by the midday break, its biggest one-day jump in three months.
China will stop requiring inbound travellers to go into quarantine starting from Jan. 8, the National Health Commission said on Monday in a major step towards easing curbs on its borders, which have been largely shut since 2020.
Following the announcement, Dalian’s most-active soyoil contract DBYcv1 gained 4.4%, while its palm oil contract DCPcv1 rose 5.1%.
Bursa Malaysia’s palm oil futures were playing catch-up with the Chinese markets, and a fresh buying in the physical market is needed to sustain this rally, said Anilkumar Bagani, research head of Mumbai-based vegetable oils broker Sunvin Group.
The Chicago Board of Trade BOcv1 was closed.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Exports of Malaysian palm oil products for Dec. 1-25 fell 0.8% to 1,262,147 tonnes from Nov. 1 to 25, cargo surveyor Intertek Testing Services said on Monday.
Malaysia, the world’s second-largest palm oil producer, on Friday accused the European Union of blocking market access of the edible oil with a new law that prevents the sale of commodities linked to deforestation in the 27-country bloc.
($1 = 4.4180 ringgit)
(Reporting by Mei Mei Chu; Editing by Savio D’Souza and Vinay Dwivedi)
((Meifong.chu@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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