Palm oil gains for sixth day on stronger crude, tight supply outlook
- The contract hit its highest since Feb. 16, 2011.
KUALA LUMPUR: Malaysian palm oil futures climbed for a sixth day on Wednesday, hovering near a 10-year high as Brent crude oil and rival Dalian oil rose, underpinned by a forecast of a deep cut in December stockpile and production.
The benchmark palm oil contract for March delivery on the Bursa Malaysia Derivatives Exchange rose 40 ringgit, or 1.07%, to 3,795 ringgit ($945.21) a tonne during early trade.
Malaysia's palm oil stocks likely fell 23% month-on-month to 1.21 million tonnes at end-Dec due to higher exports and declining output, CGS-CIMB Research said in a note.
The forecast was in line with a Reuters survey on Tuesday pegging December inventories to tumble 22% to their lowest in more than 13 years, with production seen falling for a third consecutive month.
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