Palm rises on lower stockpiles, possible production drop
Updates midday prices and adds trader's comment
KUALA LUMPUR, Oct 24 (Reuters) -Malaysian palm oil futures rose for a fourth straight session on Thursday, driven by expectations of palm production declines and lower national stockpiles.
The benchmark palm oil contract FCPOc3 for January delivery on the Bursa Malaysia Derivatives Exchange gained 18 ringgit, or 0.4%, to 4,504 ringgit a metric ton at the midday break.
The contract has so far gained 5.33% for three consecutive sessions.
Crude palm oil prices opened higher today on prospects of weaker output and likely lower overall stock levels in the country, said David Ng, a proprietary trader at Kuala Lumpur-based trading firm Iceberg X Sdn Bhd.
The Malaysian Palm Oil Board (MPOB) reported earlier this month that crude palm oil production was down 3.8% in September from August, while palm oil exports rose 0.93%.
Dalian's most-active soyoil contract DBYcv1 rose 0.36%,while its palm oil contract DCPcv1 added 0.9%.Soyoil prices on the Chicago Board of Trade BOcv1 were up 0.41%.
Palm oil tracks prices of rival edible oils as it competesfor a share of the global vegetable oils market.
Oil prices climbed by more than 1%, almost reversing previous session's losses, as Middle East tensions came back into focus ahead of the U.S. presidential electiondespite a mixed bag of U.S. fuel inventories. O/R
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
The ringgit MYR=, palm's currency of trade, weakened 0.12% against the U.S. dollar, making the commodity cheaper for buyers holding foreign currencies.
Cargo surveyors are expected to release Malaysian palm oil export estimates for October 1-25 on Friday.
Palm oil may break resistance at 4,518 ringgit per metric ton and rise into the 4,571-4,658 ringgit range, Reuters technical analyst Wang Tao said. TECH/C
text_section_type="notes">For a table on Malaysian physical palm oil prices, including refined oil, Reuters Terminal users can double click on or type OILS/MY01. * To view freight rates from Peninsula Malaysia/Sumatra to China, India, Pakistan and Rotterdam, please key in OILS/ASIA2 and press enter, or double click between the brackets. * Reuters Terminal users can see cash and futures edible oil prices by double clicking on the codes in the brackets: To go to the next page in the same chain, hit F12. To go back, hit F11. Vegetable oils OILS/ASIA1 Malaysian palm oil exports SGSPALM1CBOT soyoil futures 0#BO: CBOT soybean futures 0#S: Indian solvent SOLVENT01 Dalian Commodity Exchange DC/MENUDalian soyoil futures 0#DBY:Dalian refined palm oil futures 0#DCP:Zhengzhou rapeseed oil 0#COI:European edible oil prices/trades OILS/E
Reporting by Ashley Tang; Editing by Janane Venkatraman and Sumana Nandy
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