Malaysian palm oil futures rose more than 1% in afternoon trading on Thursday after bullish forecasts at an industry conference in India.
Prices also gained support by Malaysia's announcement that it would grant export duty exemptions for crude palm kernel oil and RBD palm kernel oil from Oct. 1 until the end of next June to reduce stockpiles in the domestic market.
The benchmark palm oil contract for December delivery was up 1.1% by the close of the Bursa Malaysia Derivatives Exchange at 2,169 ringgit a tonne.
"Palm prices were supported by the bullish price forecasts during the conference," one Kuala Lumpur-based trader said.
European crude palm oil prices are forecast to rise to $620 a tonne, or $570 free on board, by the second quarter of 2020 as stockpiles decline, James Fry, chairman of commodities consultancy LMC International, said on Thursday.
Another analyst had said on Wednesday that India's palm oil imports in 2019/20 are likely to rise 2% from a year earlier to a record high because consumption in the world's biggest edible oil buyer is expected to expand more rapidly than local supplies.
US soyoil futures on the US Chicago Board of Trade fell 0.4% in overnight trade and were last up 0.1% on Thursday.
US soybeans held steady on Thursday as concerns over the US-China trade war eased after US President Donald Trump said a deal with China could happen sooner than expected.
Palm oil prices are affected by movements in related oils that compete in the global vegetable oils market.
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