Malaysian palm oil gains

Malaysian crude palm oil futures ended 0.8 percent higher on Wednesday as crude oil held near a record high and soyabean oil extended gains in Asian trade, dealers said. Strong export growth and a weaker-than-expected rise in production also lent support to the market.
The benchmark November contract on the Bursar Malaysia Derivatives Exchange settled up 20 ringgit, or 0.8 percent, at 2,520 ringgit ($722) a tonne. "After yesterday's profit taking, the market is out to go higher," said one trader. "Crude and soyaoil have been giving that boost and domestic fundamentals are looking good."
Other traded months rose between 14 and 48 ringgit in overall trade of 7,103 lots of 25 tonnes each. Soyabean futures at the Chicago Board of Trade ended firm on Tuesday, bouncing back late in the session as wheat rallied to new highs.
But soyabean prices kept range-bound and were less volatile than either corn or wheat as traders squared soya positions before USA's monthly crop report on Wednesday. The soyaoil market settled 0.05 to 0.20 cent per lb. firmer, with December up 0.20 at 37.88 cents. The contract further gained in electronic trade on Wednesday, rising almost 1 percent to 38.82 cents per lb.
Oil held above $78 a barrel on Wednesday, close to its record high, after Opec's modest output increase failed to allay fears over stock levels during the coming winter.
US light crude for October delivery was up 6 cents at $78.29 a barrel, after coming within a whisker of August 1's record high of $78.77 on Tuesday. London Brent crude was up 18 cents at $76.56. Crude oil markets often influence prices of vegetable oils such as soyaoil and palm because of increasing use of edible oils in making biofuels, which compete with petroleum.
Malaysian palm oil output rose 14.83 percent to 1.6 million tonnes in August and reserves increased by 10.95 percent to 1.45 million tonnes, according to the Malaysian Palm Oil Board. Exports of Malaysian palm oil products for September 1-10 rose 9.3 percent to 413,299 tonnes from 378,014 tonnes shipped between August 1 and 10, cargo surveyor Interlake Testing Services said.
Asian demand for palm oil has grown since July as buyers from the Middle East to Pakistan lock in supplies for the Muslim holy month of Ramazan, which begins on Thursday. Palm oil, used in making sweetmeats and other delicacies during the festive season, is just 9 percent off an historic high of 2,764 ringgit reached in June.
November palm oil on Singapore's Joint Asian Derivatives Exchange jumped 3.5 percent to $737.50 a tonne by 1036 but only four lots traded. In the physical market, crude palm oil for September shipments in Malaysia's southern region was quoted at 2,555/2,560 ringgit a tonne. Trades were done between 2,555 and 2,560 ringgit.