- Sept 1-15 exports up 54% from Aug 1-15: Amspec Agri
- Downpour in Indonesia to hit 2H2021 output: analyst
- Malaysia's September output may not sustain August's rise
KUALA LUMPUR: Malaysian palm oil futures climbed more than 2% on Wednesday, marking a gain for a third straight session, as robust exports in the first half of September and growing concerns over sluggish production boosted prices.
The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange gained 98 ringgit, or 2.26%, to 4,438 ringgit ($1,067.60) a tonne, its highest since Sept. 9.
Exports during Sept. 1-15 soared 54% to 832,555 tonnes from the same week in August, cargo surveyor Amspec Agri said.
"After the spike in August production, it was popularly believed that September will have the same tempo. However, we notice that it's not the case, production is again weak," said Paramalingam Supramaniam, a director of Malaysian brokerage Pelindung Bestari.
"And, with India lowering import taxes to curb food inflation, palm prices are relatively defensive."
August output had expanded 11.8% from the previous month to stand at 1.7 million tonnes, the Malaysian Palm Oil Board said last week.
Indonesia's production during the second half of 2021 may miss expectations because of the lingering impact of drought in 2019 and insufficient fertiliser use, UOB KayHian said in a note.
Incessant rains that have caused flooding in central and east Kalimantan since August could be a precursor of the upcoming monsoon season in Southeast Asia that could keep availability tight, it added.
Dalian's most-active soyoil contract rose 0.7%, while its palm oil contract gained 2.3%. Soyoil prices on the Chicago Board of Trade were up 1.5%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Bursa Malaysia will be closed on Thursday for a public holiday.