Palm oil rallied the most in two weeks as a decline to the lowest price in a week boosted exports from Malaysia, the world’s second biggest producer.
The contract for October delivery gained 1.5 percent to 2,241 ringgit ($690) a metric ton on the Bursa Malaysia Derivatives, the biggest advance for most active futures since July 30. Futures fell 2.3 percent last week to close at the lowest price since July 29. The exchange was closed on Aug. 8 and Aug. 9 for the Eid festival.
Palm oil slumped to the lowest since October 2009 last month, extending losses to 8.1 percent this year, on concern that global supplies will exceed demand. Exports from Malaysia jumped 18 percent to 417,414 tons during in the first 10 days of this month from the same period in July, Intertek said today.
“Prices have seen a technical rebound as in the last few days poor fundamentals had weakened palm oil,” said Han Qiang Sim, an analyst at Phillip Futures Pte. in Singapore. “There was an improvement in exports as a weaker ringgit had been making palm oil cheaper.”
Output in Malaysia expanded 10 percent to 1.56 million tons in July from a month earlier, while reserves held at 1.65 million tons, according to a Bloomberg survey. The Malaysian Palm Oil Board will release the data on Aug. 14.
Futures climbed as traders closed their bets on further declines ahead of the MPOB data, said Donny Khor, deputy director of futures and commodities at RHB Investment Bank Bhd. in Kuala Lumpur.
Soybean oil for delivery in December advanced 0.7 percent to 42.19 cents a pound on the Chicago Board of Trade. Soybeans for November gained 0.8 percent to $11.915 a bushel.
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