NEW DELHI, June 28 (Commoditiescontrol) - Malaysian palm oil futures ended over 1 percent higher, extending upside for the second consecutive day on Tuesday due to news of some mills closure and amid wider gains in broader markets after China ease COVID-19 rules for travellers. However, rising production outlook and concerns over demand amid Indonesia's export push and fears of a slowdown in global economy are still weighing on sentiment.
The September benchmark crude palm oil contract on the Bursa Malaysia Derivatives Exchange (BMD), was up Ringgit 63 at Ringgit 4,985 per tonne by the close, after moving in the range of Ringgit 5,048 and Ringgit 4,775 per tonne. Palm had jumped 5 percent in the previous session.
Crude oil and other commodities rose as China's move to relax quarantine rules for international arrivals improved economic sentiment that has been dampened by China's strict COVID-19 policy and interest rate hikes by central banks.
Some palm oil millers in Malaysia, the world's second largest producer, have temporarily halted production following a dramatic plunge in prices of the edible oil.
Meanwhile, Malaysian authorities on Tuesday called on palm oil millers to resume production and buy oil palm fruits from farmers, after a recent plunge in prices of the edible oil prompted some companies to halt processing.
The Southern Peninsula Palm Oil Millers' Association (SPPOMA) estimated June 1-25 production to rise 17.19 percent from the previous month, traders said on Monday.
(By Commoditiescontrol Bureau: +91-22-40015505)
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