Palm oil gained for the first time in three days on speculation that China, the largest consumer after India, may boost imports after reserves at its major ports dropped to the lowest level this year.
The contract for delivery in January advanced 0.7 percent to close at 2,460 ringgit ($785) a metric ton on the Bursa Malaysia Derivatives. Palm for physical delivery in November was at 2,450 ringgit, data compiled by Bloomberg show.
Inventories at major ports in China stood at 900,000 metric tons, the least this year and 30,000 tons less than a week ago, according to Grain.gov.cn. Monthly imports may average 550,000 tons in October and November, the state-owned researcher said in an e-mailed report today.
“Seasonally, we have seen demand is low in these months, but because of the low inventory Chinese buyers may come in,” said Vijay Mehta, director of Commodity Links Pte in Singapore “For the Chinese New Year, China needs to buy, and they will have to come in somewhere in November and December,” he said, referring to the Lunar New Year festival in February.
Refined palm oil for May delivery closed unchanged at 6,084 yuan ($1,000) a ton on the Dalian Commodity Exchange and soybean oil fell 0.1 percent to close at 7,130 yuan.
Soybeans for delivery in January declined 0.2 percent to $12.9075 a bushel on the Chicago Board of Trade, while soybean oil for December gained 0.9 percent to 41.10 cents a pound.