KUALA LUMPUR: Malaysian palm oil futures rose to a record high above 4,600 ringgit ($1,101.27) a tonne on Tuesday, as market surveys showed tightening September inventories amid lacklustre production.
The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange gained 75 ringgit, or 1.64%, to 4,658 ringgit ($1,115.15) a tonne in early trade, rising for a second straight session. Palm has gained about 29% so far this year.
Malaysia’s palm oil inventories at the end of September are expected to ease slightly from a 14-month peak hit in the previous month, as skyrocketing exports offset a small rise in production, according to a Reuters poll.
Palm oil stockpile in the world’s second-largest producer likely fell 0.36% to 1.87 million tonnes, while production was seen rising 2.8% to 1.75 million tonnes.
The Malaysian Palm Oil Board will release official data on Oct. 11.
Soyoil prices on the Chicago Board of Trade were down 0.31%. The Dalian exchange is closed until Thursday for a public holiday.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.