NEW DELHI, Oct 6 (Commoditiescontrol) - Malaysian palm oil futures gained over 2.5 percent during the first session of trade on Thursday, extending upside for the 6th consecutive day, underpinned by a rally in CBOT soyoil and crude oil prices.
Expectations of a drop in Southeast Asian palm oil production from November to February due to potential La Nina weather disruptions also supported the contract.
The benchmark December palm oil on the Bursa Malaysia Derivatives Exchange was up 93 ringgit or 2.55 % at 3,735 ringgit ($807.04) a tonne by the midday break, after moving in the range of 3,806 and 3,620 ringgit a tonne.
Crude oil prices rose for a fourth straight session, with Brent at a three-week high, after OPEC+ agreed to further tighten global crude supply with a deal to slash production by about 2 million barrel per day, the largest reduction since 2020.
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
Moreover, soyoil prices on the Chicago Board of Trade (CBOT) rose 0.2 percent in electronic trade today, stretching gains to a fourth day. The Dalian exchange was closed for the week for holidays.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
(By Commoditiescontrol Bureau)
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