KUALA LUMPUR: Malaysian palm oil futures on Friday rose 7.6% for the week, ending two weeks of losses, on expectations of higher October exports ahead of the Diwali festival in India, and as heavy rains and widening coronavirus restrictions raised output concerns.
The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange settled 23 ringgit, or 0.80%, higher at 2,911 ringgit ($705.23) a tonne by the midday break, its fifth straight day of gains.
October demand is likely to be on par with the previous month as top buyer China continues its restocking and as shipments to India pick up before the Diwali celebrations in November, he said.
Market rumours ahead of cargo surveyor data due Saturday pegged Oct. 1-10 exports to rise between 9% and 13% from the previous month, traders said. Heavy rainfall brought on by La Nina has started to disrupt output in Southeast Asian palm producing countries and will bring down global crude palm oil supply this year, said analyst James Fry.
Dalian's most-active soyaoil contract rose 3.84%, while its palm oil contract gained 5.52%. Soyaoil prices on the Chicago Board of Trade were up 1.09%.