The contract for delivery in February gained 0.9 percent to close at 2,580 ringgit ($811) a metric ton on the Bursa Malaysia Derivatives, rebounding from a 2.2 percent loss in the previous two sessions.
Exports from Malaysia dropped 2 percent to 1 million tons in the first 20 days of November from the same period a month earlier, surveyor Intertek said today. That compares with a 13 percent drop in the first 10 days of the month. Abundant rainfall in November may cause prolonged soil saturation that will affect crop growth or yields, especially in low-lying areas with possibility of flooding, the Malaysian Meteorological Department said Nov. 15.
“Gains in palm were driven by the export data, which showed the narrowing of the month-on-month decline,” said Ivy Ng, an analyst at CIMB Investment bank Bhd., by phone from Kuala Lumpur. “This suggests a pick up in demand and lower-than-expected stockpiles. Market is also taking cues from improved prices of competing oils.”
Prices also gained on weather concerns and fears of flooding in the plantations, said Gnanasekar Thiagarajan, a director with Commtrendz Risk Management Services.
Soybeans for January delivery were little changed at $12.7675 a bushel on the Chicago Board of Trade. Soybean oil gained 0.5 percent to 40.42 cents a pound.
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