VEGOILS-Palm headed for 8% weekly rise on hopes of lower reserves

  • Reuters
  • Commodities News
VEGOILS-Palm headed for 8% weekly rise on hopes of lower reserves

KUALA LUMPUR, Nov 6 (Reuters) - Malaysian palm oil futures rose on Friday and were set to post a weekly gain of 8%, underpinned by higher prices of soyoil and concerns of lower supply in October.

The benchmark palm oil contract FCPOc3 for January delivery on the Bursa Malaysia Derivatives Exchange rose 42 ringgit, or 1.31%, to 3,248 ringgit a tonne during early trade.

The contract is now set to report a third straight weekly gain and the steepest weekly rise in eight.

Palm prices hit a more than eight-year high in the previous session, ending 3.6% higher.

FUNDAMENTALS

* Malaysia's palm oil inventories likely slumped to a three-year low in October, a Reuters poll showed, as rainy weather and coronavirus curbs hit output, while exports were expected to rise on higher demand from India during a festival season. Dalian's most-active soyoil contract DBYc3 rose 2.3%, while its palm oil contract DCPc3 gained 2.5%. Soyoil prices on the Chicago Board of Trade BOc1 were up 0.3%.

* 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 extend its gains into a range of 3,261-3,300 ringgit per tonne, Reuters technical analyst Wang Tao said. TECH/C

MARKET NEWS

* A gauge of Asian shares was set to cling to a near three-year peak while the dollar stayed sluggish on Friday as the prospect of a divided U.S. legislature dimmed the chance of major policy changes, lifting risk appetite. MKTS/GLOB

DATA/EVENTS

0700 Germany Industrial Output MM Sept

0745 France Reserve Assets Total Oct

0830 UK Halifax House Prices MM Oct

1330 US Non-Farm Payrolls Oct

1330 US Unemployment Rate Oct

1330 US Average Earnings YY Oct

2000 US Federal Reserve issues Consumer Credit for September

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