KUALA LUMPUR: Malaysian palm oil futures ticked up on Friday and were headed for a weekly rise, as the arrival of the monsoon season stoked production worries, but the gains were capped by sluggish October exports.

The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange rose 9 ringgit, or 0.22%, to 4,105 ringgit ($866.77) a tonne by the midday break.

For the week, the contract rebounded and is up 7.1% so far.

Storms and high risk of flooding during the year-end monsoon season — that lasts between October and January — are likely to disrupt harvesting activities and hurt production in the world’s second-largest palm producer.

The market is supported by expectations of a drop in production and a weak ringgit, while poor exports and weekend profit-taking would limit upside, a Kuala Lumpur-based trader said.

Exports of Malaysian palm oil products for Oct. 1-20 fell between 4.3% and 8.4% from the same week in September, according to two cargo surveyors.

Another firm, AmSpec Agri Malaysia, estimated exports rose 3.3%.

In related oils, Dalian’s most active soyoil contract edged 0.1% higher, while its palm oil contract fell 0.7%.

Palm oil may hover below 4,071 ringgit

Soyoil prices on the Chicago Board of Trade were down 0.2%.

Talks on extending a July deal that resumed Ukraine Black Sea grain and fertilizer exports are not making much progress because Russian concerns are not being taken into proper account, Russia’s UN ambassador in Geneva said on Thursday.

Malaysia’s financial markets will be closed on Monday for the Diwali festival.

Palm oil is biased to fall into a range of 3,958-4,001 ringgit per tonne, following its failure to break a resistance at 4,194 ringgit, Reuters technical analyst Wang Tao said.