Linked In
News In
Linked In

You are viewing 1 of your 2 complimentary articles.

Register now to receive full access.

Already registered?

Login | Join us now

Morning markets: India monsoon fears lift palm oil

Twitter Linkedin

Talk of a disappointing Indian monsoon helped palm oil jump 2.9%, well clear of Chicago crops which got off to a sluggish start on Thursday.

Official forecasters said that the monsoon would, for the first time in four years, provide below-average rainfall, a warning which has already sent sugar to its highest for nearly three years on talk of stronger Indian demand for imports.

The prospect of India – historically the world's second largest palm importer after China - buying more foreign palm oil too helped the benchmark September contract on the Bursa Malaysia Derivatives Exchange gain 65 ringgit to 2,315 ringgit a tonne in the morning session.

"Currently Malaysian palm oil exports are within expectations, but investors are short-covering on the possibility of more purchases from India," said a trader told Reuters, the news agency.

Robust weekly export data presented a further spur, with Intertek Testing Services, the cargo surveyor, reporting shipments up 3.9% at 1.02m tonnes in the first 25 days of June.

Wheat bounces off low

Chicago crops were also trading in positive territory in electronic trading at 06:15 GMT, recovering from a weak start which sent wheat to $5.35 ¼ a bushel, its lowest since early May.

Good weather for areas harvesting the winter wheat crop, and talk of better-than-expected yields in Kansas, the biggest US wheat state, have kept a lid on investor enthusiasm.

However, it was helped by a weakening in the dollar, which makes commodities traded in dollars appear cheaper to buyers paying in other currencies.

July wheat stood 1.25 cents higher at $5.41 a bushel.

Corn revives

Corn also regained early losses to stand 1 cent up at $3.87 ½ a bushel, with soybeans adding 3 cents to $11.88 a bushel.

These crops too have the prospect of favourable weather, with temperatures rising in the key growing region of the US Midwest, helping seedlings.

On external markets, New York crude added $0.22 to $68.89 a barrel, while Tokyo's Nikkei share index closed up 2.2%, its best performance for more than a month.

Twitter Linkedin
Related Stories

Evening markets: South American double whammy brings ags back down to earth

Ags lose early gains, undermined by a tumble in Brazil’s real, and falling rain in Argentina. Still, wheat futures remain in positive territory

Can cotton prices extend their rally?

History suggests futures will not stay long in the 70s cents a pound. So which way will they trend?

Morning markets: Hard wheat regains premium over soft, amid US dryness worries

Kansas City wheat outperforms, as Plains precipitation worries extend to a dearth of snow cover. But Kuala Lumpur palm oil hits a 16-month low

Evening markets: Ags gain, as funds begin to get that year-end festive mood

Ag prices recover, helped by the likes of more positive comment on US export competitiveness, and some more negative talk on Argentine rains
Home | About | RSS | Commodities | Companies | Markets | Legal disclaimer | Privacy policy | Contact

Our Brands: Comtell | Feedinfo | FGInsight

© 2017 and Agrimoney are trademarks of Agrimoney Ltd
Agrimoney is part of the Briefing Media group
Agrimoney Ltd is registered in England & Wales. Registered number: 09239069