Palm climbs for fifth day on signs of improving demand, lower output concerns

The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange gained 37 ringgit, or 1.5%, to 2,567 ringgit ($602.16) a tonne by 0250 GMT.

Agencies
Dalian's most-active soyoil contract rose 1.15%, while its palm oil contract gained 2.02%. Soyoil prices on the Chicago Board of Trade were also up 0.34%.
Malaysian palm oil futures extended a four-day winning streak on Thursday, lifted by concerns over lower production and signs of improving demand.

The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange gained 37 ringgit, or 1.5%, to 2,567 ringgit ($602.16) a tonne by 0250 GMT.

The contract climbed 2.5% in the previous session to a near five-month closing high.


FUNDAMENTALS

Malaysian exports in July 1-15 fell 9%-10% from the month before, cargo surveyors said on Friday. This was better than a 17%-18% monthly decline in July 1-10 shipments.

The Southern Peninsular Palm Oil Millers Association had previously forecast July 1-10 production to fall 17.4%, traders said last week.
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Dalian's most-active soyoil contract rose 1.15%, while its palm oil contract gained 2.02%. Soyoil prices on the Chicago Board of Trade were also up 0.34%.

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

Indonesia's state oil company PT Pertamina produced its first successful batch of biodiesel made up of 100% palm oil (D100) in its Dumai refinery last week and is set to produce 1,000 barrels per day (bpd), the company said on Wednesday.

Palm oil may rise further to 2,624 ringgit per tonne, as suggested by its wave pattern and a projection analysis, Reuters technical analyst Wang Tao said.
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