KUALA LUMPUR: Malaysian palm oil futures rose on Friday, tracking gains in rivals, and headed for a weekly climb as investors weighed worries about slowing November production against weaker demand.
The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange gained 83 ringgit, or 1.7%, to 4,964 ringgit ($1,191.26) a tonne during early trade.
Fundamentals
Cargo surveyors had estimated an 8%-13% rise in Malaysian exports during Nov. 1-10, but the market is concerned shipments may dwindle as demand from key destinations like India typically shifts to soft oils during the winter months.
Ouput in the world's second-largest palm oil producer is also expected to slow as the peak production season has ended, while the monsoon brings heavy rainfall.
- Indonesia, the world's biggest palm oil maker, exported 2.89 million tonnes of the vegetable oil in September, including refined products, data from Indonesia Palm Oil Association (GAPKI) showed on Thursday.
Indonesia produced 4.57 million tonnes of palm oil in September and the domestic stock stood at 3.65 million tonnes by the end of the month, the data showed.
Dalian's most-active soyoil contract rose 0.3%, while its palm oil contract gained 0.9%. Soyoil prices on the Chicago Board of Trade were up 0.3%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
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