KUALA LUMPUR: Malaysian palm oil futures jumped to a record high above 4,800 ringgit a tonne on Wednesday, lifted by a rally in crude oil prices and anticipation of a drawdown in September inventories.
The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange climbed 124 ringgit, or 2.62%, to 4,862 ringgit ($1,163.16) a tonne in early trade, rising for a third consecutive session.
Fundamentals
US oil prices rose for a fifth straight session to their highest since 2014 amid global concerns about energy supply on signs of tightness in crude, natural gas and coal markets.
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
Malaysia's palm oil stocks at the end of September likely fell by 2.5% month-on-month to 1.83 million tonnes due to higher export volume, CGS-CIMB Research said in a note on Tuesday. The forecast was in line with a Reuters' poll estimating a 0.36% decline.
Soyoil prices on the Chicago Board of Trade were almost unchanged, after jumping nearly 4% in the previous session. The Dalian exchange is closed until Thursday 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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