Data showing surprisingly strong Malaysian palm oil exports this month overcame bearish stocks data to help prices build a comfort zone above two-month lows.

The Malaysian Palm Oil Board, in a keenly watched sector report, said that Malaysia's palm inventories jumped 11.5% to 1.58m tonnes in September.

The rise, which was more than traders had expected, reflected a 4.1% rise in production coupled with a 0.4% slide to 1.31m tonnes in exports from the country, the world's second ranked palm producer after Indonesia.

Export rebound 

However, any disappointment at the data was revered by statistics from Intertek Testing Services, the cargo surveyor, showing that palm exports rose 8.3% to 339,000 tonnes in the first 10 days of October, compared with the same period in September.

Traders had been braced for a far weaker figure in a period when China, the world's biggest consumer of palm oil, was sidelined by a week-long holiday. Indeed, export to China dipped 15.9% to 98,600 tonnes.

However, shipments to the Indian subcontinent jumped by 18.4% to 95,600 tonnes, with exports to the European Union up 21% at 62,800 tonnes.

US hopes

While data later on Monday from Societe Generale de Surveillance pegged the 10-day rise in exports at only 3.9%, to 345,000 tonnes, the report's identification of 22,900 tonnes of palm shipments to the US cheered investors.

Palm oil for December delivery closed 3.0% higher at 2,147 ringgit a tonne in Kuala Lumpur.

Palm last week fell to 2,103 ringgit a tonne, its lowest since July.