Today Online (30/10/2020) - KUALA LUMPUR, Oct 30 - Malaysian palm oil futures rose on Friday after scaling a more than nine-month high in the previous session, with strength in rival oils putting palm on course for a second straight weekly gain.

The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange climbed as much as 2.1% to 3,115 ringgit ($748.26) in early trade.

FUNDAMENTALS

* Dalian's most-active soyoil contract gained 1.62%, while its palm oil contract rose 2.46%. Soyoil prices on the Chicago Board of Trade were up 1.36%.

* Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.

* Malaysia on Wednesday gave approval for state-owned palm oil plantation agency Federal Land Development Authority (Felda) to issue a 9.9 billion ringgit ($2.38 billion) sukuk with a government guarantee to finance its restructuring plans.

* A leading trade body has urged the Indian government not to reduce import taxes on edible oils as lower prices could hurt local farmers who are trying to boost production.

* Edible oil prices in India, the world's biggest importer of vegetable oils, have jumped recently, tracking a rally on foreign markets and after the local soybean crop was damaged by excessive rainfall.

* Although the government is not currently suggesting dampening edible oil prices by cutting import taxes, it has taken such a step in the past.

MARKET NEWS

* A gauge of Asian shares fell for a third straight session on Friday as jitters over upcoming U.S. presidential elections and fears that the global economic downturn will persist enveloped markets. REUTERS

Read more at https://www.todayonline.com/world/vegoils-palm-oil-set-second-straight-weekly-rise-tracking-rival-oils