Palm oil headed for the first back-to-back weekly gains since June, trading near a six-week high, on speculation that a weakening Malaysian currency would boost exports from the world’s second-largest producer.
The contract for November delivery swung between gains and losses before ending the morning session 5 ringgit lower at 2,351 ringgit ($711) a metric ton on the Bursa Malaysia Derivatives. Futures earlier touched 2,362 ringgit to match yesterday’s intraday peak, which was the highest level since July 11. Prices are set for a 1.8 percent rise this week after a 4.6 percent advance in the previous five-day period.
Exports climbed 10 percent to 880,979 tons in the first 20 days of this month from the same period in July, surveyor Intertek said Aug. 20. Shipments gained 12 percent, according to SGS (Malaysia) Sdn. The ringgit, which touched its weakest level against the U.S. dollar in three years yesterday, has depreciated 7.5 percent this year.
“The ringgit is supporting palm oil,” said Vijay Mehta, a director of Commodity Links Pte. in Singapore. Declining reserves in India may boost purchases by the biggest buyer.
Imports by India will climb to a record 10.5 million tons to 10.7 million tons in the year ending Oct. 31 from 10.2 million tons a year earlier, B.V. Mehta, executive director of the Solvent Extractors’ Association of India said Aug. 20. Purchases will rise even as the Indian rupee tumbled to a record low against the dollar, he said.
Soybean oil for delivery in December climbed 0.4 percent to 42.95 cents a pound on the Chicago Board of Trade. Soybeans for November delivery increased 0.9 percent to $12.9825 a bushel.
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