KUALA LUMPUR: Malaysian palm oil futures extended a four-day winning streak on Monday, lifted by robust export demand, although a survey projecting a rise in end-June stockpiles and production weighed. The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange closed up 95 ringgit, or 2.51%, to 3,884 ringgit ($935.00) a tonne, hitting its highest since June 10.
"The recovery in destination buying, specially from India and China, also supported the bullish cause in crude palm oil futures so far," said Anilkumar Bagani, research head of Mumbai-based vegetable oils broker Sunvin Group.
Indian buyers have resumed purchases of refined palm oil after a gap of a year as New Delhi removed restrictions on the imports and reduced import taxes last week, four industry officials told Reuters.
Indian buyers have contracted up to 70,000 tonnes of refined bleached deodorized palm oil, mostly from Indonesia, to be shipped in July and August, traders and brokers said.
Malaysia's palm oil inventories at end-June likely hit a nine-month high, rising 7.5% from May to 1.69 million tonnes, a Reuters survey showed.
Production in the world's second-largest producer likely rose 7% from May to 1.68 million tonnes, while exports were seen jumping 10% to 1.39 million tonnes.
The stock level remains tight as it is 15% below the past 10-year average of 1.9 million tonnes, Ivy Ng, regional head of plantations research at CGS-CIMB Research, said in a note.
"Palm oil is attracting good demand due to the wide price discount against soya oil, which was $393 per tonne on July 1," Ng said.
The Malaysian Palm Oil Board is scheduled to release its June supply and demand data on July 12.
Dalian's most-active soyaoil contract fell 0.2%, while its palm oil contract gained 1.1%. The Chicago Board of Trade was closed for a public holiday.
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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