Palm oil futures gained a third day, the longest winning streak in three months, tracking advances in crude oil and soybeans.
Crude oil surged 9.6 per cent in the past two trading days and extended gains in Asian trading today. Vegetable oils, which are used as biofuels, often track crude.
October-delivery palm oil soared as much as 4.3 per cent to RM2,284 a ton on the Malaysia Derivatives Exchange. Futures have gained 7.9 per cent in three days, the longest such stretch of gains since the period ended May 4. The commodity paused at RM2,279 at the midday break.
November-delivery soybeans surged as much as 5.1 per cent in after-hours trading on the Chicago Board of Trade, extending last week’s 7.3 per cent advance. It was at US$10.17 at 12:26 pm, the first time in a month that it’s above US$10 a bushel.
The oilseed is crushed for meal for animal feed and oil for cooking, palm oil’s main substitute. Soybean oil ended last week with a 27 per cent premium over palm oil, according to Bloomberg.
Investors are looking to record US soybean harvest to make up for shortages caused by the drought in South America. The US, Brazil and Argentina are the largest growers of the oilseed.
“Soybean supply concerns are more prevalent,” said Ben Santoso, an analyst at DBSVickers Securities (Singapore), by telephone today. “Indiana is recording the coolest temperature in 112 years and crops are way behind schedule,” he said. — Bloomberg Source : Business Times]]>