Palm oil advanced for the first time in three days on speculation that exports from Malaysia may rebound amid forecasts for rains that may hamper harvests.
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.
Refined palm oil for May delivery increased 0.8 percent to close at 6,268 yuan ($1,029) a ton on the Dalian Commodity Exchange and soybean oil climbed 0.4 percent to end at 7,184 yuan.