Palm surges for fourth day on lower stockpiles, possible production drop

Malaysian palm oil prices saw a significant increase of over 2%, with the benchmark contract for January delivery on the Bursa Malaysia Derivatives Exchange rising by 2.59% to 4,602 ringgit a metric ton, marking a total gain of 7.92% over four consecutive sessions. This rise is attributed to anticipated palm production declines and lower national stockpiles, as reported by the Malaysian Palm Oil Board. The rise in crude palm oil prices is also influenced by concerns of weaker output and potential lower stock levels, alongside the strengthening of crude oil prices due to Middle East conflicts and the U.S. presidential election. The ringgit's strengthening against the U.S. dollar also plays a role in the price fluctuations.

Malaysian palm oil jumped more than 2% on Thursday, supported by expectations of palm production declines and lower national stockpiles. The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange gained 116 ringgit, or 2.59%, to 4,602 ringgit a metric ton at the close. The contract has gained a total of 7.92% over four 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 reported 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 rose 0.71%, while its palm oil contract added 1.55%. Soyoil prices on the Chicago Board of Trade BOcv1 were up 2.21%. Palm oil tracks prices of rival edible oils as it competes for a share of the global ...