Palm oil up on positive export estimates

KUALA LUMPUR, Oct 21 (Reuters): Malaysian palm oil futures closed up on Monday, rebounding after two sessions of losses, supported by higher export estimates and anticipated seasonal palm production declines.
The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange gained 46 ringgit, or 1.08 per cent, to 4,301ringgit ($1,000.23) a metric ton at the close.
The contract fell 1.3 per cent in the last two consecutive sessions.
Palm prices today are reacting towards better export estimates and expectations of weaker output in the coming weeks in line with seasonal weakness, said David Ng, a proprietary trader at Kuala Lumpur-based trading firm Iceberg X Sdn Bhd.
Cargo surveyors estimate exports of Malaysian palm oil products rose between 8.7 per cent and 9.5 per cent during Oct. 1-20, compared with the same period a month ago.
The Malaysian Palm Oil Board (MPOB) reported earlier this month that crude palm oil production was down 3.8 per cent in September from August, while palm oil exports rose 0.93 per cent.
Dalian's most-active soyoil contract fell 0.92 per cent,while its palm oil contract shed 0.89 per cent.Soyoil prices on the Chicago Board of Trade were up 1.2 per cent.
Palm oil tracks prices of rival edible oils as they compete for a share of the global vegetable oils market.
Oil prices were broadly steady, following a more than 7 per cent drop last week on worries about demand in China, the world's top oil importer, and an easing of concerns about potential supply disruptions in the Middle East.
The ringgit, palm's currency of trade, strengthened 0.05 per cent against the US dollar, making the commodity more expensive for buyers holding foreign currencies.