SINGAPORE: Malaysian palm oil futures rose on Friday, as traders reacted to data showing signs an increase in demand.
The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange rose 30 ringgit, or 0.8%, to 3,773 ringgit ($799.53) a metric ton in morning trade. The contract has fallen 0.4% so far in the week.
Malaysia’s palm oil stocks at the end of October rose 5.84% from the previous month to 2.45 million metric tons, data from industry regulator the Malaysian Palm Oil Board (MPOB) showed. According to the data, crude palm oil production gained 5.89% from September to 1.94 million tons in October, while palm oil exports increased to 1.47 million tons.
In a recent wave of buying, China has purchased up to 1.04 million metric tons of US soybeans, displaying signs of strong Chinese demand. The US Department of Agriculture (USDA) increased its forecast for soybean production to 4.129 billion bushels from its October estimate of 4.104 billion.
India’s soymeal exports are likely to rise in coming months as concerns over soybean output in top producer Brazil lift global prices to two-month highs, prompting buyers to turn to the south Asian country, industry officials said.
Soybean prices impact the cost of soyoil, which competes with palm oil for a share in the global vegetable oil market. Soyoil prices on the Chicago Board of Trade climbed 0.2%.
Dalian’s most-active soyoil contract was down 0.3%, while its palm oil contract was up 0.7%.
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