KUALA LUMPUR: Malaysian palm oil futures ended 3% higher on Monday, extending gains to a sixth session as rival Dalian oils surged and shipments to India gained pace ahead of the Diwali festival next month.
The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange settled up 83 ringgit, or 2.85%, at 2,994 ringgit ($723.80), having earlier risen as much as 4% to its highest since Sept. 21.
A bullish supply report from the US Department of Agriculture (USDA) combined with strong gains in Dalian edible oils boosted palm oil prices, said Paramalingam Supramaniam, director at Selangor-based brokerage Pelindung Bestari Sdn Bhd.
A USDA report on Friday pegged US soyabean stocks at a five-year low, smaller than previously forecast, as adverse weather reduced the acreage that farmers will harvest.
India is likely to produce 10.46 million tonnes of soyabean in 2020, nearly 15% lower than the previous estimate, the Soyabean Processors Association of India said.
Dalian's most-active soyaoil contract rose 2.85%, while its palm oil contract gained 3.89%. Soyaoil prices on the Chicago Board of Trade were up 0.38%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Further aiding sentiment, data from cargo surveyors showed palm oil exports from Malaysia during Oct. 1-10 rose between 12.4% and 13.3% from a month earlier.
Cargo surveyor Intertek Testing Services estimated shipments to the Indian subcontinent, which is set to celebrate Diwali in mid-November, rose 60% in the first 10 days of October.
Malaysia's end-September palm oil stockpile expanded 1.24% from the previous month to a three-month high, the Malaysian Palm Oil Board data showed.-Reuters
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