Palm Oil Futures Gain for Fourth Day as Malaysian Exports Climb
Palm oil climbed for a fourth day after data showed that exports from Malaysia, the world’s largest producer after Indonesia, gained and as concern deepened that dry weather in the growing regions may hurt output.
The contract for April delivery advanced 0.8 percent to close at 2,685 ringgit ($804) a metric ton on Bursa Malaysia Derivatives. Futures reached 2,688 ringgit on Feb. 14, the highest price since Dec. 9.
Shipments from Malaysia rose 32 percent to 606,190 tons in the first 15 days of February from the same period a month earlier, Intertek, a cargo surveyor, said on Feb. 15. SGS (Malaysia) Sdn. is scheduled to release the data later today.
“Intertek has reported higher export numbers, which are positive for the market,” said Chee Tat Tan, an analyst at Phillip Futures Pte., by phone from Singapore. “Strong fundamentals coupled with the Malaysian palm oil export tax remaining unchanged at 5 percent in March are likely to contribute to further upside in the commodity.”
Unusually dry weather in some parts of South East Asia will have some impact on production and tighten supplies, keeping prices higher, he said.
Soybean oil for delivery in May closed 1 percent lower at 39.47 cents a pound on the Chicago Board of Trade on Feb. 14. Soybeans ended 0.4 percent lower at $13.25 a bushel. Markets are closed in the U.S. today for a holiday.
Refined palm oil for May delivery ended little changed at 6,010 yuan ($991) a ton on the Dalian Commodity Exchange. Soybean oil slid 0.2 percent to close at 6,728 yuan.
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