Malaysian palm oil futures closed more than 2% higher on Friday, extending a winning streak to six consecutive weeks, after an industry body forecast a lower-than-expected rise in production and as the ringgit weakened.
The benchmark palm oil contract on the Bursa Malaysia Derivatives Exchange closed at 2,579 ringgit ($624.30) per tonne, rebounding from losses earlier in the session.
The contract had opened 1.3% lower as rival oils cheapened. Palm oil is affected by price movements in related oils as they compete for share in the global vegetable oils market.
A Kuala Lumpur-based trader told Reuters that prices had turned around because of new estimates from the Malaysian Palm Oil Association showing production rose 1.02% in October to 1.86 million tonnes.
Elsewhere, Dalian's January palm oil contract traded 1.2% lower, while the soyaoil contract rose 0.3%.
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