JAKARTA, Nov 5 (Reuters) - Malaysian palm oil futures hit a near two-year high on Tuesday, as prospects of a supply squeeze due to lower output, and strong biodiesel demand boosted prices.
* The benchmark palm oil contract on the Bursa Malaysia Derivatives Exchange rose as much as 2.5% in early trade to hit a high of 2,594 ringgit ($625.06) per tonne, its highest since Jan. 2018.
* Top palm oil industry analysts last week revised up their price outlook for the edible oil because of disappointing output and optimism that Indonesia's so-called B30 biodiesel programme will help bolster demand.
* Dorab Mistry at an industry conference in Nusa Dua said Malaysian palm oil output in 2020 was likely to be lower than 2019, due to dry weather and fertiliser cuts.
* Thomas Mielke, editor of World Oil, expects world palm oil stocks to fall by 2-3 million tonnes in the next 12 months, from September's 14.7 million tonnes.
* Meanwhile, haze due to forest fires in top palm oil producer Indonesia has likely affected the quality of palm fruits and production of the vegetable oil this year, leading industry analyst James Fry said on Thursday.
* Asian shares closed in on their July peak on increasing signs the United States and China are inching closer to a truce in their trade war and on optimism the U.S. economy is well poised for solid, consumer-driven growth.
DATA/EVENTS AHEAD (GMT) 0145 China Caixin Services PMI Oct 0330 Australia RBA Cash Rate Nov 0500 India IHS Markit Svcs PMI Oct 0930 UK Reserve Assets Total Oct 1330 US International Trade Sept 1445 US Markit, Comp, Svcs Final PMIs Oct 1500 US ISM N-Mfg PMI Oct ($1 = 4.1500 ringgit)
(Reporting by Fransiska Nangoy; editing by Uttaresh.V)