The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange gained 75 ringgit, or 2.79%, to 2,763 ringgit ($660.22) by 0237 GMT.
FUNDAMENTALS
Output in Indonesia, the world’s biggest producer of palm oil, fell 8.9% to 23.5 million tonnes in the first half of the year due to drier weather, the Indonesian Palm Oil Association said on Wednesday.
The US Department of Agriculture, in a monthly report, said US farmers will reap their second biggest soybean harvest due to favourable weather and raised its ending stocks view.
Dalian’s most-active soyoil contract gained 4.07%, while its palm oil contract were up 2.66%. Soyoil prices on the Chicago Board of Trade gained 0.48%.
The most active soybean futures were up 0.5%. The contract had gained 1.1% on Wednesday as short-covering and position squaring emerged after the USDA confirmed expectations for massive harvest.
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 into a range of 2,707-2,731 ringgit per tonne, as the drop from the Aug. 4 high of 2,808 ringgit has completed, Reuters technical analyst Wang Tao said.
