KUALA LUMPUR: Malaysian palm oil futures hit a two-month high on Friday, achieving a fourth session of gains in five, due to tight physical supplies of the tropical oil.
Benchmark palm oil futures for October on the Bursa Malaysia Derivatives Exchange rose 1.7 percent to 2,525 ringgit ($627) per tonne in the evening. The price earlier rose to an intraday high of 2,551 ringgit, its highest levels since June 13.
Palm reached a weekly gain of 4.9 percent, its strongest weekly climb since February.
Traded volumes stood at 73,297 lots of 25 tonnes each at the closing trade, higher than last year's average of 44,600.
"The market is fulfilling the upside trend. Supplies are tight as production isn't coming in," explained a Kuala Lumpur-based trader, attributing the short supplies to lower output due to the El Nino's dry weather effects.
The weather phenomenon, which occurred last year, typically brings scorching heat across Southeast Asia, impacting palm oil yields in the world's largest producers of the tropical oil -- Malaysia and Indonesia -- this year
@frss2525: Yes, ur calculation is right, the previous few year until this 4th quarter FYE June 2016, JTiasa invest a lot into its plantation segment..... After this quarter end 30/6/16, with all the plantable land fully planted & with 3 completed CPO mills, the last CPO mill currently at final stage of construction & expected can do test & commissioning b4 end of 30/9/16.
After completion of this last CPO mill, the huge capex for its plantation segment shud be quite minimum & it shall start to contribute positively to the company earning.
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Shadows
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Posted by Shadows > 2016-08-12 10:08 | Report Abuse
Vroom...vroom... just start engine but not moving