KUALA LUMPUR: Malaysian palm oil futures climbed more than 3% to an eight-year high on Thursday, extending gains to a third straight session on surveys showing a steep decline in October stockpiles and production. The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange closed up 111 ringgit, or 3.6%, at 3,208 ringgit a tonne, its highest since May 16, 2012.

Malaysia's October palm oil inventories likely slumped 9.8% month-on-month to 1.56 million tonnes, hitting a three-year low, as rainy weather and coronavirus restrictions hamper production, according to a Reuters poll. Production likely fell 5.6% to hit a five-month low of 1.77 million tonnes.

Stronger Dalian and soyaoil prices also boosted palm oil futures on Thursday, a Kuala Lumpur-based trader said, adding that supply would be tight in the next few months. Dalian's most-active soyaoil contract gained 0.4%, while its palm oil contract rose 1.6%. Soyaoil prices on the Chicago Board of Trade were up 2%. Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.