KUALA LUMPUR: Malaysian palm futures closed at a near 10-month high on Wednesday, riding on estimates of lower October production and inventory, although volatile global trading ahead of the US presidential election results limited gains.

The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange closed up 29 ringgit, or 0.94%, to 3,099 ringgit ($744.06) a tonne, its highest closing level since Jan. 13.

The market is speculating on lower production in Malaysia, a Singapore-based trader said.

October production likely fell 6% from the month before, while inventories were seen down 8%, as Covid-19 restrictions and a labour shortage hamper harvesting, Ivy Ng, regional head of plantations research at CGS-CIMB Research, said in a note. Dalian’s most-active soyaoil contract were up 2%, while its palm oil contract rose 2.3%.—Reuters