Palm oil advanced for a third day to the highest level in almost two weeks on speculation that rising exports from Malaysia may help pare stockpiles in the world’s largest producer after Indonesia.
The contract for July delivery climbed as much as 1.6 percent to 2,326 ringgit ($765) a metric ton on the Bursa Malaysia Derivatives, the highest price for the most-active futures since April 12, before trading at 2,315 ringgit at 12:23 p.m. in Kuala Lumpur. The gain trimmed losses for the most- active contract to 5 percent this year.
Exports from Malaysia increased 5.3 percent to 1.12 million tons in the first 25 days of this month from the same period in March, surveyor Intertek said today. Reserves dropped to a seven-month low of 2.17 million tons last month as exports advanced, according to Malaysian Palm Oil Board data. Output, which gained 2.2 percent last month, typically picks up in the second quarter.
“If production is not growing that fast, and exports improve, there’s a good chance that stocks may come down,” said Ivy Ng, an analyst at CIMB Investment Bank Bhd. “Malaysian production on a month-on-month basis may not grow that much.”
Soybean oil for July delivery rose 0.4 percent to 49.10 cents a pound on the Chicago Board of Trade, while soybeans gained 0.6 percent to $13.53 a bushel.
Refined palm oil for September delivery advanced 1.5 percent to 6,022 yuan ($976) a ton on the Dalian Commodity Exchange, after closing at the lowest price since October 2009 yesterday. Soybean oil climbed 0.7 percent to 7,366 yuan a ton, rebounding from the lowest close since February 2010 yesterday.
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