Palm oil surges on lower stockpiles

KUALA LUMPUR, Oct 24 (Reuters): Malaysian palm oil jumped more than 2% on Thursday, supported by expectations of palm production declines and lower national stockpiles.

The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange gained 116 ringgit, or 2.59%, to 4,602 ringgit a metric ton at the close.

The contract has gained a total of 7.92% over four consecutive sessions.

Crude palm oil prices opened higher today on prospects of weaker output and likely lower overall stock levels in the country, said David Ng, a proprietary trader at Kuala Lumpur-based trading firm Iceberg X Sdn Bhd.

The Malaysian Palm Oil Board reported this month that crude palm oil production was down 3.8% in September from August, while palm oil exports rose 0.93%.

Dalian's most-active soyoil contract rose 0.71%, while its palm oil contract added 1.55%. Soyoil prices on the Chicago Board of Trade BOcv1 were up 2.21%.