Palm oil set for 8% weekly rise on higher soyoil, slower output growth forecast

The Southern Palm Oil Millers Association estimated output in some parts of Malaysia in Sept. 1-15 to rise 2.93% from the month before, traders said on Thursday. This was lower than the 8.84% monthly rise seen during Sept. 1-10.

Reuters
The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange gained as much as 75 ringgit, or 2.52%, to 3,050 ringgit ($739.21) a tonne in early trade, hitting its highest since Jan. 14.
KUALA LUMPUR: Malaysian palm oil futures climbed for a fourth straight session on Friday, setting them on course for an 8.4% weekly rise, boosted by stronger rival soyoil and forecast of a slower output growth.

The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange gained as much as 75 ringgit, or 2.52%, to 3,050 ringgit ($739.21) a tonne in early trade, hitting its highest since Jan. 14.

The contract jumped more than 3% in intraday trade on Thursday on strong Chinese demand ahead of the Mid-Autumn Festival on Oct. 1, and was on course to log its sharpest weekly rise in two months.


The Southern Palm Oil Millers Association estimated output in some parts of Malaysia in Sept. 1-15 to rise 2.93% from the month before, traders said on Thursday. This was lower than the 8.84% monthly rise seen during Sept. 1-10.

FUNDAMENTALS
Dalian's most-active soyoil contract gained 2.77%, while its palm oil contract rose 2.57%. Soyoil prices on the Chicago Board of Trade were up 1.18%.

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Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.

Crude oil prices drifted lower, pausing after three days of gains, as producers prepared to resume operations in the Gulf of Mexico and data showed Saudi Arabian exports rose from record lows.

Palm oil may clear a resistance at 3,003 ringgit per tonne, Reuters technical analyst Wang Tao said.

MARKET NEWS
Asian shares looked set to rise following pledges by central bankers globally to do whatever it takes to support the economic recovery while oil perked up as OPEC threatened to clamp down on member states that did not cut output.
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