(March 11): Malaysian palm oil futures jumped in Asian evening trade on Friday, rebounding from losses a day ago, as low supply concerns and bullish price sentiments from an industry conference fueled the market rally.
Experts at an industry conference in Kuala Lumpur on Wednesday had forecast palm to trade at 2,700-3,000 ringgit per tonne by June, as a crop-damaging El Nino is expected to impact yields and lower annual output growth.
The palm oil contract for May delivery on the Bursa Malaysia Derivatives Exchange surged 2.4% to 2,608 ringgit (US$638) per tonne at the end of the trading day. It earlier reached a new three-week and intraday high of 2,612 ringgit.
Traded volume stood at 48,005 lots of 25 tonnes each on Friday.
"It's a supply driven rally, aided and abetted by speculative buying and massive short covering," said a trader from Kuala Lumpur.
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