Palm oil for October delivery on the Bursa Malaysia Derivatives Exchange rose 0.85% to 2,731 ringgit ($641.83) a tonne, as of 0253 GMT.
It rose as high as 1.5% in early trade.
FUNDAMENTALS
Two leading industry analysts, however, told Reuters palm oil prices will fall by the fourth quarter due to higher output and inventory levels, dampening a rally that sent the tropical oil to a five-month high this week.
The Council of Palm Oil Producing Countries (CPOPC) said on Wednesday the prospect of a La Nina weather pattern bringing wetter-than-normal weather to Indonesia and Malaysia could hit crop production.
CPOPC forecast Indonesia’s crude palm oil production in 2020 would be 1-2 million tonnes below last year’s 44 million tonnes, while output in Malaysia is expected to drop 4.3% to 19 million tonnes.
Dalian’s most-active soyoil contract rose 0.90%, while its palm oil contract gained 2.98%. Soyoil on the Chicago Board of Trade was up 0.3%.
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 rise to 2,739 ringgit per tonne, as it has broken a resistance at 2,700 ringgit, Reuters technical analyst Wang Tao said.
MARKET NEWS
Financial markets greeted Friday with a number of milestones as the euro celebrated a 21-month peak against an embattled dollar, while Asian equities paused short of a six-month top and gold neared its highest on record.
