Palm oil climbs to two-week high

SINGAPORE, Aug 21 (Reuters): Malaysian palm oil futures rose to a two-week high on Wednesday, buoyed by prospects of weakening supply in the world's largest producer Indonesia, although softer exports data capped gains.

The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange closed up 39 ringgit, or 1.05 per cent, at 3,754 ringgit ($858.06) a metric ton.

The contract hit an intraday high of 3776 ringgit, its strongest level since Aug. 6.

"Indonesia production underperforming expectations is contributing to palm oil prices being uncompetitive versus soft oils, surprisingly at a time of the year when palm origin is typically going into peak production", said Pranav Bajoria, director of Singapore-based brokerage Comglobal Pte Ltd.

Dalian's most-active soyoil contract advanced 0.79 per cent, while its palm oil contract climbed 0.74 per cent. Soyoil prices on the Chicago Board of Trade strengthened 0.82 per cent.

Malaysia has maintained its export tax for crude palm oil at 8 per cent in September.