months yesterday as crude oil gained before a US Energy Department
report forecast to show refinery operating rates increased and gasoline
August-delivery palm oil rose 0.8 per cent to
RM2,445 a metric ton on the Malaysia Derivatives Exchange to end a
three-day losing streak. Vegetable oils track crude oil as they can be
used in biofuels.
Crude oil in New York rebounded as much as 2.7
per cent to US$71.99 a barrel, the first increase in six days, and last
traded at US$71.87 a barrel.
The contract fell to less than US$70 a barrel Monday for the first time
since February 5 on concerns that European nations’ debt-cutting
measures will slow the economic recovery and reduce demand.
crude oil prices” had put pressure on palm oil and the gains in palm
oil today are “most definitely crude-oil related,” said Arhnue Tan, a
senior analyst at ECM Libra Capital Sdn Bhd.
Palm oil for January
delivery on the Dalian Commodity Exchange gained 1.3 per cent to 6,590
yuan a ton. Soybean oil gained 0.9 per cent to 7,542 yuan. China is the
largest consumer of vegetable oils.
Palm oil exports from
Malaysia, the second-largest producer, advanced 23 per cent to 591,887
tons in the first 15 days of May, compared with the same period in
April, led by China, market surveyor Intertek said on May 15.
to China rose 38 percent to 161,700 tons for the period, the data
Palm oil in Malaysia has dropped 8.2 per cent since the
year started amid concern over record soybean crops. That has helped to
narrow the premium of soybean oil over palm oil to US$65.82 a ton from
US$119.21 when 2009 ended, according to Bloomberg data.
stronger ringgit has also narrowed the premium. The Malaysian currency
has gained 6.7 per cent since the year started.
Source : Business Times