Palm oil rises

KUALA LUMPUR: Malaysian palm oil futures were in line for their second consecutive session of gains at the midday break on Friday, buoyed by expectations of rising demand and tracking gains in palm kernel oil prices.

Another trader said palm prices were also supported by overnight gains in U.S. soyoil on the Chicago Board of Trade.

The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange was up 0.3 percent at 2,665 ringgit ($620.72) at the midday break.

Traded volumes stood at 21,354 lots of 25 tonnes each at noon. "The market is up on expectations of strong demand," said a futures trader from Kuala Lumpur, as key markets India and China could stock up purchases of the tropical oil ahead of the Diwali and mid-Autumn festivals in October.

Malaysian palm oil exports for the first half of August dropped compared with the corresponding period in July, according to data from cargo surveyors. Intertek Testing Services reported a 14.6 percent decline, while Societe Generale de Surveillance showed a 12.8 percent drop.