Crude palm oil futures on the Bursa Malaysia Derivatives exchange on Tuesday should see a boost as Malaysia and China appear to have skirted a clash on trade ties.
Bursa Malaysia front-month palm oil futures for November ended up 0.7 percent at 2,254 ringgit (US$549.09) per metric ton and hit a high of 2,260 ringgit on trading volumes of 28,540 lots of 25 metric tons.
Malaysian Prime Minister Mahathir Mohamad wrapped up meetings in China on Monday and said the country seeks “fair” trade with Beijing even as he wants to renegotiate, or cancel, more than US$20 billion in Chinese-funded projects.
China’s Premier Li Keqiang for his part said the country was ready to increase “to a fairly large extent” imports of palm oil and other agricultural produce to meet the needs of Chinese consumers.
For August, traders are holding back some shipments ahead of an export duty cut for palm oil to zero effective at the start of September, from 4.5 percent now.