KUALA LUMPUR: Malaysian palm oil futures climbed on Tuesday, snapping two straight sessions of losses, driven by expectations of lower palm production and firmer soyoil prices.
The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange gained 35 ringgit, or 0.79 percent, to 4,472 ringgit (USD1,061.73) a metric ton at the close. The contract fell 0.20percent in the last two sessions.
Crude palm oil futures traded higher with expectations of weak output in the coming weeks, said David Ng, a proprietary trader at Kuala Lumpur-based trading firm Iceberg X Sdn Bhd.
“Stronger soybean oil prices during Asian hours also kept market sentiment higher. We see prices supported above 4,400 ringgit and resistance at 4,580 ringgit,” Ng said.
A Reuters survey estimated that Malaysia’s palm oil stocks are poised to slip in September for the first time in seven months, while production is expected to decline. The Malaysian Palm Oil Board (MPOB) is scheduled to release its September supply and demand data on October 10.
Soyoil prices on the Chicago Board of Trade were up 0.46percent. The Dalian Commodity Exchange is closed from October 1 to 8 due to public holidays. Palm oil tracks the price movements of rival edible oils, as it competes for a share of the global vegetable oils market.
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