Palm oil headed for a weekly advance on speculation that imports from India would increase amid reduced supplies of cooking oils in the second-largest consumer.
The contract for January delivery climbed 0.4 percent to 2,599 ringgit ($812) a metric ton on the Bursa Malaysia Derivatives by the midday break in Kuala Lumpur, set for a 3.6 percent gain this week. Palm rose to 2,628 ringgit on Nov. 1, the highest close since September 2012 and 21 percent more than the 2,167 ringgit settlement on July 29, meeting the common definition of a bull market.
Purchases by India probably climbed in October as a delay in the oilseed harvest reduced cooking oil stockpiles to the lowest level in nine months, according to a Bloomberg survey published on Nov. 13. Crude and refined palm oil imports advanced 14 percent to 710,000 tons from a month earlier, the survey showed. The Solvent Extractors’ Association of India is scheduled to release the data today.
“The numbers from India will give some clues to show how demand is growing,” said James Ratnam, an analyst at TA Securities Holdings Bhd. in Kuala Lumpur. “Even though the price difference with soybean oil has narrowed substantially, palm oil is still cheaper.”
Soybean oil’s premium was at $102.08 a ton today, compared with $259.56 a year earlier, showed data compiled by Bloomberg. Soybean oil for January delivery increased 0.4 percent to 41.39 cents a pound on the Chicago Board of Trade. Soybeans for delivery in January rose 0.1 percent to $13.1525 a bushel.
Palm oil exports from Malaysia, the second-largest producer, fell 4.6 percent to 744,975 tons in the first half of this month from the same period in October, Intertek said today.
Refined palm oil for May delivery dropped 0.2 percent to 6,320 yuan ($1,038) a ton on the Dalian Commodity Exchange and soybean oil advanced 0.3 percent to 7,306 yuan.
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