Malaysian palm oil futures rose over 1% on Wednesday, supported by data pointing to slower than expected growth in production. The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange closed up 1.4% at 2,208 ringgit ($528.86) per tonne, its biggest daily gain in a week.
The contract rose to as high as 2,210 ringgit during the session. "The market was supported by negative growth in production," said a Kuala Lumpur-based trader, referring to industry data released by a state millers association. The data showed slowing output growth for the first 20 days of August versus the corresponding period last month.
Palm oil production in Malaysia, the world's second largest producer, rose 15.1% in July to 1.74 million tonnes, the highest monthly output this year. It also marked the biggest month-on-month rise since March 2018, according to data from industry regulator the Malaysian Palm Oil Board.
Meanwhile, US soyaoil futures on the Chicago Board of Trade were last up 0.7% on Wednesday. Chicago corn futures edged up on Wednesday to recover from their lowest in more than three months, buoyed after a US crop tour forecast lower yields, while soyabeans and wheat also gained.
In other related edible oils, the September soyaoil contract on the Dalian exchange closed up 0.1% on Wednesday, while the Dalian September palm oil contract rose 0.4%. Palm oil prices are affected by movements in related oils that compete in the global vegetable oils market.
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