Palm rises for third day as lower output forecasts stoke supply worries
- The contract rallied 3% in the previous session after industry groups estimated a decline in Sept. 1-20 Malaysian production following a near 12% rise in August
KUALA LUMPUR: Malaysian palm oil futures rose on Thursday, extending gains to a third session on the back of lower production forecasts and robust exports ahead of a key festival in top buyer India.
The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange rose 15 ringgit, or 0.35%, to 4,345 ringgit ($1,037.49) a tonne in early trade.
FUNDAMENTALS
The contract rallied 3% in the previous session after industry groups estimated a decline in Sept. 1-20 Malaysian production following a near 12% rise in August.
- Exports during Sept. 1-20 rose 36.7% from the same period in August due to a surge in demand from India and China, cargo surveyor Societe Generale de Surveillance said on Tuesday.
Investors are awaiting leading industry analysts to present their outlook at the Globoil India conference from Thursday to Saturday.
Dalian's most-active soyoil contract rose 0.7%, while its palm oil contract gained 1.5%. Soyoil prices on the Chicago Board of Trade were up 0.04%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Record palm oil prices, and new government promises of payouts even if Indian prices slump, are driving an ambitious $1.5 billion oil palm cultivation plan which aims to lift domestic output sharply within a decade.
- Palm oil may retreat into a range of 4,157-4,234 ringgit per tonne, as its bounce from the Monday low of 4,032 ringgit is ending, Reuters technical analyst Wang Tao said.
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