KUALA LUMPUR: Malaysian palm oil futures extended early gains on Wednesday, logging its highest intraday rise in four weeks, as the market benefited from an increase in early November exports.
The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange closed 131 ringgit, or 2.73%, higher at 4,923 ringgit ($1,185.84) a tonne.
Highly anticipated data from the Malaysian Palm Oil Board (MPOB) met market expectations, with end-October palm oil stocks rising 4.42% from the previous month to 1.83 million tonnes.
Production gained 1.3% to 1.73 million tonnes, while palm oil exports plunged 12.03% to 1.42 million tonnes, MPOB data showed.
“It is basically a neutral report, thus all eyes will be on November production and export numbers,” said Paramalingam Supramaniam, director at Selangor-based brokerage Pelindung Bestari.
“Going by the initial findings, November output could be lower marginally versus October and exports a tinge higher.”
Exports during Nov. 1-10 rose between 8% and 8.7% from the same week in October, according to data from cargo surveyors.
Chicago Board of Trade (CBOT) soybean futures soared on Tuesday after the U.S. Department of Agriculture reduced its estimate for domestic yields, surprising traders who were expecting an increase.
Dalian’s most-active soyoil contract gained 1.9%, while its palm oil contract rose 2.6%. Soyoil prices on the CBOT were also up 0.7%.
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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