13.08.2020 (economictimes.indiatimes.com) - KUALA LUMPUR: Malaysian palm oil futures climbed nearly 3% on Thursday, tracking gains in Dalian and CBOT rival oils, while lower Indonesia production also lifted sentiment.
The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange gained 75 ringgit, or 2.79%, to 2,763 ringgit ($660.22) by 0237 GMT.
Output in Indonesia, the world's biggest producer of palm oil, fell 8.9% to 23.5 million tonnes in the first half of the year due to drier weather, the Indonesian Palm Oil Association said on Wednesday.
The US Department of Agriculture, in a monthly report, said US farmers will reap their second biggest soybean harvest due to favourable weather and raised its ending stocks view.
Dalian's most-active soyoil contract gained 4.07%, while its palm oil contract were up 2.66%. Soyoil prices on the Chicago Board of Trade gained 0.48%.
The most active soybean futures were up 0.5%. The contract had gained 1.1% on Wednesday as short-covering and position squaring emerged after the USDA confirmed expectations for massive harvest.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Palm oil may rise into a range of 2,707-2,731 ringgit per tonne, as the drop from the Aug. 4 high of 2,808 ringgit has completed, Reuters technical analyst Wang Tao said.
Read more at: