KUALA LUMPUR: Malaysian palm oil futures erased early losses to end nearly 2% higher on Thursday, bolstered by stronger Dalian palm oil and supply concerns stemming from heavy rains in top producers Indonesia and Malaysia. Palm oil for October delivery on the Bursa Malaysia Derivatives Exchange closed up 52 ringgit, or 1.96%, to 2,708 ringgit ($636.28) a tonne.
The Council of Palm Oil Producing Countries (CPOPC) on Wednesday said the prospect of a La Nina weather pattern bringing wetter-than-normal weather to Indonesia and Malaysia could hit crop production.
The Malaysian Palm Oil Association forecast crude palm oil production during July 1-20 to have fallen 8.9% from the previous month, traders said on Wednesday. Dalian's most-active soyaaoil contract fell 0.22%, while its palm oil contract rose 2.19%. Soyaoil prices on the Chicago Board of Trade were up 0.49%.
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