Palm extends gains to third session on supply slump, improving exports
- Also, supporting prices were gains in rival oils elsewhere.
SINGAPORE: Malaysian palm oil futures rose for a third consecutive session on Friday, as traders expect another month of tepid production and improving exports.
The benchmark palm oil contract for March delivery on the Bursa Malaysia Derivatives Exchange rose 23 ringgit, or 0.7%, to 3,402 ringgit ($842.91) a tonne in early trade.
"The market is anticipating negative growth production in December and improving exports," a Kuala Lumpur-based trader told Reuters. "We are also expecting January export tax to remain at zero."
Exports of Malaysian palm oil products during Dec. 1 to 15 rose 9.5% to 725,380 tonnes on-month, cargo surveyor Societe Generale de Surveillance said on Tuesday.
Meanwhile, Malaysia's palm oil end-stocks in November fell to their lowest in more than three years as production slumped and exports fell more than expected, data released by the Malaysian Palm Oil Board last week showed.
Also, supporting prices were gains in rival oils elsewhere.
Dalian's most-active soyoil contract rose 1.7%, while its palm oil contract gained 0.9%. Soyoil prices on the Chicago Board of Trade were last flat, but saw gains overnight on South American crop concerns.
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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