Bursa Malaysia crude palm oil futures seen higher this week

Malaysia one-ringgit noteMalaysia one-ringgit note

Crude palm oil futures on the Bursa Malaysia Derivatives may get a boost on Monday after higher exports reported by the Malaysian Palm Oil Board on Friday.

Board figures showed palm oil exports rose 6.75 percent to 1.205 million metric tons in July 2018 from 1.129 million metric tons in June.

Separately, for the first ten days of August, exports of Malaysian palm oil products rose 7.4 percent to 298,610 metric tons from 278,048 metric tons shipped during July 1-10, according to AmSpec Agri Malaysia.

Additionally, plans by Indonesia to increase the use of biofuels to offset high refined crude oil imports supports the market, according to India’s Karvy Commodities Broking in a Friday note. “Indonesia on Wednesday evening said it aims to make the use of biodiesel compulsory for all vehicles and heavy machinery from September 1, to cut down on diesel imports and reduce the country’s current account deficit,” the broker noted.

Bursa Malaysia front-month palm oil futures for October eased 0.2 percent on Friday to 2,242 ringgit ($549.11) a metric ton.

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