Palm oil demand is expected to remain robust for the rest of the
month as key consumer countries India and China rebuild low stock
levels, bucking a seasonal trend in which shipments of the tropical oil
typically taper off at year-end.
A narrow discount to a rival edible oil, however, could limit demand
growth moving forward, say traders and analysts, since buyers usually
switch to more favoured soyoil when its price premium over palm narrows.
The price differential or the spread between palm oil on the Bursa
Malaysia Derivatives Exchange and Chicago Board of Trade soyoil has been
hovering between $80 and $90 a tonne, soyoil's narrowest premium over
palm since February.
"For October we're looking at a 10 to 13 percent gain in exports,
mainly from China and India, though India demand may slow compared to
the previous month," said David Ng, a derivatives specialist at Phillip
Futures in Kuala Lumpur.
India and China are the world's top two buyers of palm oil, and
command a substantial share of global demand. Palm oil import demand
from China and India, which celebrate the Mid-Autumn and Diwali
festivals respectively this month, had already gained in September as
buyers stocked up ahead of the events.
SELL COPPER BELOW 457 TGT 455 SL ABOVE 460.10
SELL GOLD BELOW 29920 TGT 29850 SL ABOVE 30020
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