Palm Gains as Weaker Ringgit Boosts Malaysia’s Export Prospects
Palm oil climbed after data showed exports from Malaysia are heading for a fourth month of advance, aided by a weakening currency that boosts the appeal of ringgit-denominated futures.
Palm for December delivery gained as much as 0.7 percent to 2,316 ringgit ($716) a metric ton on the Bursa Malaysia Derivatives and was at 2,306 ringgit by the midday break in Kuala Lumpur. Futures lost 4.1 percent this month after advancing the most in almost three years in August. Palm for physical delivery in October was at 2,330 ringgit yesterday, data compiled by Bloomberg show.
Shipments from the world’s second-largest producer rose 6.5 percent to 1.24 million tons in the first 25 days of September from the same period a month earlier, surveyor Intertek said today. Exports in August climbed 7.4 percent, the biggest gain since March, according to the Malaysian Palm Oil Board. The ringgit fell against the dollar for a fourth day.
“A weaker ringgit makes palm oil cheaper for overseas buyers and refiners, hence likely to boost export demand,” said Say Hwa, head of investment at Phillip Futures Pte in Singapore.
Soybeans for delivery in November rose 0.3 percent to $13.17 a bushel on the Chicago Board of Trade. Soybean oil for December delivery gained 0.3 percent to 42.20 cents a pound.
Refined palm oil for January delivery was little changed at 5,416 yuan ($885) a ton on the Dalian Commodity Exchange. Soybean oil fell 0.2 percent to 7,070 yuan a ton.
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