Palm Oil Has First Weekly Gain in Five as Malaysia Exports ClimbRanjeetha Pakiam
Palm oil advanced to a two-week high as increased exports from Malaysia, the world’s largest producer after Indonesia, signaled a rebound in demand.
The contract for July delivery climbed 0.3 percent to 2,315 ringgit ($763) a metric ton on the Bursa Malaysia Derivatives, the highest most-active price at close since April 12. Futures gained 0.8 percent this week, the first such advance since the five days ended March 22.
Exports from Malaysia increased 2.7 percent to 1.08 million tons in the first 25 days of this month from the same period in March, with shipments to India more than doubling, surveyor Societe Generale de Surveillance said yesterday. Imports of the crude variety have gained 89 percent to 1.95 million tons in the first quarter of this year from the same quarter in 2012, Solvent Extractors’ Association of India data show. India is the world’s biggest palm oil buyer followed by China.
“In the first three months of this year, their edible oil imports continued to run at record levels,” said Alvin Tai, an analyst at RHB Investment Bank Bhd., referring to purchases by India “The momentum has been really strong, helped by the current low prices.”
Indonesia cut the export tax on crude palm oil to 9 percent in May from 10.5 percent this month, Bachrul Chairi, director general for foreign trade at the Trade Ministry said today. Malaysia will keep the tax unchanged at 4.5 percent.
Soybean oil for July delivery declined 0.5 percent to 49.24 cents a pound on the Chicago Board of Trade, while soybeans were little changed at $13.705 a bushel.
Refined palm oil for September delivery declined 0.5 percent to close at 5,950 yuan ($965) a ton on the Dalian Commodity Exchange. Soybean oil ended little changed at 7,306 yuan a ton.