VEGOILS-Palm oil rises for second day as exports pick up, rival oils gain

  • Reuters
  • Commodities News
VEGOILS-Palm oil rises for second day as exports pick up, rival oils gain

* Palm climbs for second straight session

* Millers data shows decline in Oct output - broker

* Q4 palm prices to hover at 2,700-2,900 ringgit/ton - Refinitiv (Updates with closing prices, fresh quotes)

By Mei Mei Chu

KUALA LUMPUR, Oct 21 (Reuters) - Malaysian palm oil futures rose for a second straight session on Wednesday, tracking strength in rival Dalian oils and as exports picked up amid slowing production.

The benchmark palm oil contract FCPOc3 , for January delivery, on the Bursa Malaysia Derivatives Exchange settled up 30 ringgit, or 1.1%, to 2,888 ringgit ($697.25) a tonne.

Earlier in the session, the contract rose to an intraday high of 2.8% and hit its highest since Oct. 15.

"Crude palm oil prices are still in an uptrend, given the strength in edible oils, higher demand in October and lower expectations for production locally," said Marcello Cultrera, institutional sales manager at Phillip Futures in Kuala Lumpur.

Palm oil prices had jumped 3% on Tuesday after cargo surveyor data showed Malaysian exports during Oct. 1-20 rose 4% from a month earlier. from millers showed production during Oct. 1 to 20 fell 10% from the prior month, Cultrera added.

Market participants expect production in Malaysia to decline in the fourth quarter, hit by a labour shortage and wet weather conditions, after output in the seasonally strong month of September belied expectations by growing just 0.3%. ample rainfall will boost production in Malaysia in the 2020/21 season by 2% from the previous year to 19.7 million tonnes, Refinitiv senior analysts wrote in a report. Output in top producer Indonesia was pegged to rise 7% to 48.2 million tonnes. palm oil futures will likely hover at a support of 2,700-2,900 ringgit per tonne throughout the fourth quarter of 2020, Refinitiv wrote.

Dalian's most-active soyoil contract DBYc3 rose 2.5%, while its palm oil contract DCPc4 gained 2.8%. Soyoil prices on the Chicago Board of Trade BOc1 were up 0.8%.

Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market. ($1 = 4.1420 ringgit)

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