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Palm rises for third consecutive session
Sept stocks could rise to 2.29 mln T -analyst
Soyoil rises 2.5% overnight as U.S cuts harvest estimates
Updates with midday prices, adds quotes
KUALA LUMPUR, Sept 13 (Reuters) – Malaysian palm oil futures climbed nearly 4% on Tuesday as lacklustre forecast of U.S. soybean harvest raised worries about rival soyoil supplies, while strong early-September exports further lifted the oilseed further.
The benchmark palm oil contract FCPOc3 for November delivery on the Bursa Malaysia Derivatives Exchange rose 137 ringgit, or 3.72%, to 3,820 ringgit ($847.76) a tonne by the midday break, up for a third straight session.
Exports during Sept. 1-10 rose between 9.3% and 25.5% from the same period in August, cargo surveyors said.
Demand from India, the world’s biggest vegetable oil consumer, is expected to ramp up this month ahead of the festive season in October.
Malaysia’s palm oil stocks at end-August climbed to their highest in 33 months, as output rose with peak production season getting underway, palm oil board data showed on Monday.
Production is expected to continue rising in September and may push inventories 9.2% higher to 2.29 million tonnes, Ivy Ng, regional head of plantations research at CGS-CIMB Research, said in a note.
CGS-CIMB Research projected crude palm oil prices to trade in the 3,500-4,500 ringgit per tonne range due to tougher competition from top producer Indonesia, although palm’s high discount against soyoil will encourage demand.
Soyoil prices on the Chicago Board of Trade BOcv1 rose 2.5% overnight after the U.S. Agriculture Department said soybean supplies will fall to a seven-year lows as hot and dry weather during August in western growing areas cut into its harvest potential.
Dalian’s most-active soyoil contract DBYcv1 rose 3.5%, while its palm oil contract DCPcv1 also gained 3.5%.
Palm oil may test a resistance at 3,738 ringgit per tonne, a break above could lead to a gain into 3,783-3,855 ringgit range, Reuters technical analyst Wang Tao said. TECH/C
($1 = 4.5060 ringgit)
(Reporting by Mei Mei Chu; editing by Uttaresh.V)
((Meifong.chu@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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