JAKARTA: Malaysian palm oil futures booked their second consecutive daily gains on Wednesday, underpinned by production concerns and strength in rival oils.
The benchmark palm oil contract for March delivery on the Bursa Malaysia Derivatives Exchange rose 1.60% to 4,454 ringgit ($1,057.45) when market closed on Wednesday.
Palm oil production during Dec. 1-20 is expected to fall compared with the same period last month due to floods in Peninsular Malaysia, a Kuala Lumpur-based trader told Reuters.
Floods in peninsular Malaysia killed at least 17 and displaced over 30,000 people, while authorities on Tuesday warned of more storms and heavy rainfall in the next few days.
Prices for palm oil and soyoil contracts for May delivery on the Dalian Commodity Exchange jumped 2.32% and 1.93%, respectively. Soyoil prices on the Chicago Board of Trade rose 0.83%
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Palm oil may bounce more into a range of 4,480-4,555 ringgit per tonne, following its stabilisation around a support at 4,296 ringgit, said Reuters technical analyst Wang Tao.
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