Palm futures rebound to gain 4% amid labour shortage

News Image

MG News | July 14, 2022 at 09:25 AM GMT+05:00

July 14, 2022: Malaysian palm oil futures rose nearly 4% early Thursday, rebounding from steep losses in the previous session, with production woes supporting sentiment after Indonesia stopped sending its workers to labour-starved estates in Malaysia.

The benchmark palm oil contract FCPOc3 for September delivery on the Bursa Malaysia Derivatives Exchange was up 133 ringgit, or 3.54%, at 3,894 ringgit ($877.03) a tonne, as of 0303 GMT.

Palm fell 8.6% in the previous session to a one-year closing low on expectations of weak July exports.

FUNDAMENTALS

* Indonesia said on Wednesday it has temporarily stopped sending its citizens to work in Malaysia, including thousands recruited for the plantation sector, citing a breach in a worker recruitment deal signed between the two countries. Read full story

* The plantation sector will be the worst affected by the freeze order as it is more reliant on Indonesian workers for harvesting activities in the estates — critical for the upcoming peak production months, Ivy Ng, regional head of plantations research at CGS-CIMB Research, said in a note.

* "The delay could lead to palm oil production for the second half of 2022 falling below the level from a year ago," she added.

* Dalian's most-active soyoil contract DBYcv1 rose 1.4%, while its palm oil contract DCPcv1 gained 1%. Soyoil prices on the Chicago Board of Trade BOcv1 were up 1.3%.

* Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.

* Palm oil may test a support at 3,592 ringgit per tonne, a break below could open the way towards 3,284 ringgit, Reuters technical analyst Wang Tao said.

Reuters

Related News

Name Price/Vol %Chg/NChg
KSE100 179,571.27
436.67M
1.06%
1878.35
ALLSHR 108,600.94
844.23M
1.00%
1073.54
KSE30 53,548.42
162.02M
0.99%
525.53
KMI30 256,725.70
154.74M
0.76%
1936.43
KMIALLSHR 70,620.69
563.61M
0.98%
683.55
BKTi 48,625.03
36.31M
1.37%
658.39
OGTi 37,179.52
8.29M
0.94%
345.85
Symbol Bid/Ask High/Low
Name Last High/Low Chg/%Chg
BITCOIN FUTURES 61,590.00 61,900.00
60,590.00
1755.00
2.93%
BRENT CRUDE 72.36 73.51
72.21
-1.38
-1.87%
RICHARDS BAY COAL MONTHLY 115.00 0.00
0.00
0.50
0.44%
ROTTERDAM COAL MONTHLY 126.50 0.00
0.00
0.60
0.48%
USD RBD PALM OLEIN 1,157.50 1,157.50
1,157.50
0.00
0.00%
CRUDE OIL - WTI 69.20 70.21
69.04
-1.14
-1.62%
SUGAR #11 WORLD 13.88 14.03
13.86
-0.14
-1.00%

Chart of the Day


Latest News
June 24, 2026 at 06:36 PM GMT+05:00

Shifa earns historic dual JCI honor


June 24, 2026 at 06:15 PM GMT+05:00

SCRA balance drops Rs915m to Rs26.3bn


June 24, 2026 at 05:00 PM GMT+05:00

Pakistan showcases basmati, eyes deeper EU trade ties



Top 5 things to watch in this week

Pakistan Stock Movers
Name Last Chg/%Chg
Name Last Chg/%Chg