VEGOILS-Palm oil set for 3% weekly rise on output concerns
KUALA LUMPUR, Oct 23 (Reuters) - Malaysian palm oil futures climbed on Friday for a fourth straight session and looked set to post a 3% weekly gain, fuelled by fears of declining output from wet weather conditions, while coronavirus curbs also hamper production.
The benchmark palm oil contract FCPOc3 for January delivery on the Bursa Malaysia Derivatives Exchange rose 11 ringgit, or 0.4%, to 2,955 ringgit ($713.08) in early trade.
* The Malaysian Palm Oil Association (MPOA) is appealing to key palm producing state Sabah to allow plantations and mills to operate at full capacity and for extended hours as a partial lockdown to contain a fresh surge in coronavirus infections hampers production, Chief Executive Officer Nageeb Wahab told Reuters.
* The association estimated an 8% monthly decline in Oct. 1-20 production, according to traders on Thursday, raising supply concerns as October exports rise. Rainy weather prevails in top producers Malaysia and Indonesia due to a La Nina weather pattern. The wetter-than-normal weather is expected to last until the end of the year, according to a Refinitiv report on Wednesday. Dalian's most-active soyoil contract DBYc3 gained 1.9%, while its palm oil contract DCPc4 rose 1.9%. 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.
* Palm oil may test a resistance at 2,963 ringgit per tonne, a break above which could lead to a gain into 2,994-3,023 ringgit, Reuters technical analyst Wang Tao said. TECH/C
* Asian stocks were set for cautious gains after positive U.S. economic data and signs of progress in stimulus talks in Washington lifted Wall Street benchmarks. MKTS/GLOB
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