KUALA LUMPUR: Malaysian palm oil futures gained for a third straight session to hit their highest in more than six months on Wednesday, as trading breached a psychological barrier and market was upbeat about the industry outlook.
The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange shot up 1.56 percent to 2,873 ringgit ($685.68).
Trading volumes were 57,600 lots of 25 tonnes each.
Earlier, the contract hit 2,876 ringgit, its highest since March 8. It has risen 4 percent in three days.
A Kuala Lumpur-based futures trader said the market likely rallied in anticipation of a positive outlook from an industry event.
"Crude oil added support as well, and technical strength and traders' short covering after the futures rose above the psychological level of 2,850 ringgit helped," the trader said.
The market is expected to track updates and insights from industry speakers at the three-day Globoil India conference, starting on Wednesday.
Reuters market analyst for commodities and energy technicals Wang Tao had said earlier on Wednesday that palm may break a resistance at 2,836 ringgit per tonne, and rise more into a range of 2,853-2,877 ringgit.
Another trader said palm oil prices were buoyed by a surge in demand from China, ahead of the Golden Week holidays.
"Palm is tracking Dalian closely. China is looking forward to its Golden Week holiday in October, and buyers are going to stock up on palm oil for the rest of September, and palm will piggyback on that," the trader added.
The Chicago Board of Trade (CBOT) soybean oil contract declined 0.3 percent.
The January soybean oil contract on the Dalian Commodity Exchange slipped 0.4 percent, while January palm olein climbed 0.9 percent. - Reuters