KUALA LUMPUR: Palm oil futures are trading at the highest in almost eight months amid expectations of higher demand from major buyer China.
Futures in Kuala Lumpur rose for a second day, adding as much as 0.9% to 2,918 ringgit a ton, to trade at the highest since Jan. 23. Prices are up 3.8% so far this week.
The palm oil market is still upbeat on estimates for a 12.5% increase in demand from September 1-15, mainly due to increased appetite from China as it restocks its reserves and meets higher domestic demand, according to Marcello Cultrera, institutional sales manager and broker at Phillip Futures in Kuala Lumpur.
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