Corn futures surged to 13-month high and soybeans extended a rally to
the highest price since January after Russia halted grain exports
Thursday. Corn jumped as much as 5.8 per cent, soybeans gained as much
as 2.4 per cent, and wheat futures soared to a 23-month high on the
Chicago Board of Trade Thursday.
Palm oil has rebounded 18 per
cent from a seven-month low on July 7 on speculation that demand may
rise in Asian nations and futures will track advances in crude oil,
soybeans and equities.
China, India, Pakistan and Indonesia mark festivals in the three months ending September, typically stoking edible-oils demand.
may have flooding in some of the main growing areas in November and
December because of La Nina weather, the state forecaster said. La Nina
may gain strength by the end of the year, bringing above normal rain in
northern Sarawak and the state of Sabah, the Malaysian Meteorological
Prices must jump to as high as RM3,200 to cool
export demand as output declines in Malaysia and weather damages canola
crops in Europe and Canada, Dorab Mistry, a director at Godrej
International Ltd said Thursday.
Malaysia’s production probably
fell last month, lowering inventory, and is supporting prices, said
Arhnue Tan, an analyst at ECM Libra Capital. Malaysian Palm Oil Board
will release July’s production, inventory and export data next week.
the short term, weather will likely be the main driver of palm oil
prices,” Tan Ting Min, a plantation analyst for Credit Suisse Group in
Kuala Lumpur, said in a report.
“If La Nina were to coincide
with the monsoon at end-2010, palm oil harvesting could be disrupted due
to flooding and heavy rainfall while extraction rates could fall.”
Credit Suisse raised its estimate of the average palm oil price this year to RM2,600 from RM2,500 previously.