Palm oil gained on speculation that exports from Malaysia, the second-largest producer, may increase after climbing for the first time in three months in June.
The contract for September delivery advanced as much as 0.5 percent to 2,387 ringgit ($748) a metric ton on the Bursa Malaysia Derivatives, and ended the morning session at 2,379 ringgit. Palm for local physical delivery in July was at 2,385 ringgit yesterday, data compiled by Bloomberg show.
“It’s still summer in the northern hemisphere, so demand should stay strong,” said Alan Lim Seong Chun, an analyst at Kenanga Investment Bank Bhd. “Although production may increase slightly, the increase in demand should be able to absorb the higher production in July.” The tropical oil, used in everything from noodles to soaps, clouds in colder temperatures.
Exports gained 4.1 percent to 1.47 million tons in June from a month earlier, a Bloomberg survey published last week showed. Output rose 6.2 percent to 1.47 million tons and reserves fell 3.7 percent to 1.75 million tons, the least since June 2012, according to the survey. Official data by the Malaysian Palm Oil Board are scheduled for release tomorrow.
Soybean oil for delivery in December was little changed at 45.88 cents on the Chicago Board of Trade, while soybeans for delivery in November advanced 0.9 percent to $12.635 a bushel.
Refined palm oil for January delivery gained 0.3 percent to 5,868 yuan ($957) a ton on the Dalian Commodity Exchange, while soybean oil for delivery in the same month climbed 0.6 percent to 7,278 yuan.
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Source : Bloomberg