Malaysian palm oil futures extended gains on Friday evening to their highest in nearly three-and-a-half months, tracking US soyaoil on the Chicago Board of Trade (CBOT) and related oils on China's Dalian Commodity Exchange. The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange was up 2.1% at 2,179 ringgit ($520.92) a tonne at the close for its strongest daily gain in two months.
Palm oil rose as much as 2.3% to 2,185 ringgit, its strongest since April 22, on the way to a fifth straight session of gains, adding 5.7% this week. "Dalian and US soyaoil moved up strongly during the afternoon," one Kuala Lumpur futures trader said. US soyaoil futures on CBOT had jumped 3.6% on Thursday and was last up 1.7% at 1103 GMT on Friday. In related oils, the September soyaoil contract on the Dalian exchange surged 4% and the Dalian September palm oil contract gained 3.2%.
Palm oil prices are affected by movements in related oils that compete in the global vegetable oils market. Malaysian markets will be closed on Monday for a public holiday. Trading will resume on Tuesday, with official July data for palm oil stocks, output and exports due for release by the Malaysian Palm Oil Board after 0430 GMT. Malaysian palm oil stockpiles are expected to rise for the first time in five months as production gains outpace exports, a Reuters survey showed.
Stocks in July are forecast to rise 1.8% to 2.47 million tonnes, while output is expected to gain 11.4% to 1.69 million tonnes. Exports are seen rising 3.8% from June to 1.44 million tonnes in July, supported by demand from India, China and the European Union.
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