Aug. 23 (Bloomberg) -- Palm oil climbed to a six-week high, posting the first back-to-back weekly gains since June, on speculation that a weakening Malaysian currency would boost exports from the world’s second-largest producer.
The contract for November delivery climbed 0.6 percent to 2,369 ringgit ($716) a metric ton on the Bursa Malaysia Derivatives, the highest level at close for most-active futures since July 11. Prices rose 2.6 percent 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 7.4 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 after the Indian rupee weakened against the dollar, he said.
Soybean oil for delivery in December climbed 0.3 percent to 42.87 cents a pound on the Chicago Board of Trade. Soybeans for November delivery increased 0.6 percent to $12.9475 a bushel.
Refined palm oil for January delivery gained 0.5 percent to close at 5,550 yuan ($907) a ton on the Dalian Commodity Exchange. Soybean oil dropped 0.3 percent to 7,078 yuan a ton.
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