KUALA LUMPUR: Malaysian palm oil futures extended gains on Friday to a seventh session and were set for a more than 10% weekly jump on stronger crude prices and concerns over wet weather hitting production.
The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange had gained 65 ringgit, or 1.76%, to 3,765 ringgit ($809.68) a tonne by the midday break and was on track for its longest winning streak since March 2021.
The contract would mark its biggest weekly jump in nearly two months if gains hold.
Palm rose in line with gains in soybean oil and energy prices, but may succumb to profit-taking ahead of a long weekend and crucial data releases next week, said Sathia Varqa, co-founder of Singapore-based Palm Oil Analytics.
The Malaysian bourse will be closed on Monday for a holiday.
The Malaysian Palm Oil Board is scheduled to release September supply and demand data when the market reopens for trading on Tuesday, with a Reuters’ poll forecasting inventories rising to a near three-year high.
The US Department of Agriculture is also scheduled to release its world supply and demand estimates for soybeans next week, Varqa said.
Soyoil prices on the Chicago Board of Trade slipped 0.1% after a four-session rally.
Palm climbs for sixth day on weather worries, soyoil strength
The Dalian exchange is closed for the week for holidays. Oil prices rose, continuing an upward trend after OPEC+ this week agreed to tighten global supply with a deal to cut production targets by 2 million barrels per day.
Stronger crude prices makes palm a more attractive option for biodiesel feedstock.
Plantation firms in Malaysia are stepping up mechanisation to stem losses running into billions of dollars as fruit goes unharvested during their worst labour shortage yet.
There are concerns that the year-end monsoon season will hurt production in the world’s second-biggest producer of palm oil as the Malaysian Meteorological Department has forecast heavy rains from October onwards.
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