By Mei Mei Chu
KUALA LUMPUR, Dec 7 (Reuters) – Malaysian palm oil futures hit a one-week high in their second consecutive day of gains on Tuesday, as industry surveys pointed to tightening November production and inventory.
The benchmark palm oil contract FCPOc3 for February delivery on the Bursa Malaysia Derivatives Exchange gained 146 ringgit, or 3.07%, to 4,896 ringgit ($1,157.72) a tonne by the midday break, its highest since Nov. 29.
It had gained 0.6% during its first night trading session on Monday.
Malaysia’s palm oil inventories at end-November likely slipped 3.5% from the previous month to a four-month low of 1.77 million tonnes, a Reuters survey showed on Monday.
The market was also supported by Malaysian Palm oil Association (MPOA) data showing November production of around 1.65 million tonnes, lower than trade estimates of around 1.71 to 1.72 million tonnes, said Anilkumar Bagani, research head of Mumbai-based vegetable oils broker Sunvin Group.
Investors are also awaiting Malaysian Palm Oil Board data and early December export data from cargo surveyors, both due on Friday.
Bagani said Sunvin expects December palm oil exports from Malaysia to slide more as China was completely out of palm oil buying and India had robust purchases during October and November.
Dalian’s most-active soyoil contract DBYcv1 rose 1%, while its palm oil contract DCPcv1 rose 1.3%. Soyoil prices on the Chicago Board of Trade BOcv1 were up 0.9%.
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 break a resistance at 4,812 ringgit per tonne and rise into a range of 4,873 to 4,948 ringgit, Reuters technical analyst Wang Tao said. TECH/C
($1 = 4.2290 ringgit)
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(Reporting by Mei Mei Chu; Editing by Rashmi Aich and Devika Syamnath)
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