Palm Oil Climbs for Fourth Day as Malaysian Exports Seen GainingRanjeetha Pakiam and Swansy Afonso
Palm oil advanced for a fourth day to the highest in almost three months on speculation that exports from Malaysia, the world’s second-largest producer, may climb as consumers stock up ahead of Ramadan next month.
The contract for September delivery gained 0.2 percent to 2,472 ringgit ($784) a metric ton on the Bursa Malaysia Derivatives, the highest level at close since March 22. Palm for local physical delivery in July was at 2,460 ringgit, according to data compiled by Bloomberg.
Exports from Malaysia jumped 18 percent to 709,860 tons in the first 15 days of this month, Intertek said June 15. Shipments gained 16 percent to 707,148 tons in the same period, with exports to Pakistan expanding almost 18 times to 107,650 tons from a month earlier, SGS (Malaysia) Sdn. said on June 17. The two surveyors are scheduled to release estimates for the first 20 days of the month tomorrow.
“Demand from the Middle East and India will rise ahead of Ramadan and stockists will also begin buying ahead of the festival season in India, which starts in August,” Ambika T.B., an analyst with Karvy Comtrade Ltd., said by phone from the southern Indian city of Hyderabad. “Exports are likely to be higher month-on-month from now on.”
Demand for palm oil typically picks up ahead of Ramadan, which falls in July this year, when Muslims break day-long fasts with communal meals.
Indonesia’s exports of palm oil and its derivatives rose 22 percent to 1.82 million tons in May from a month earlier, the nation’s palm oil association, known as Gapki, said today.
Soybean oil for December delivery climbed 0.5 percent to 47.82 cents a pound on the Chicago Board of Trade, while soybeans for delivery in November were little changed at $12.905 a bushel. Refined palm oil for January delivery declined 0.5 percent to close at 6,238 yuan ($1,018) a ton on the Dalian Commodity Exchange, while soybean oil for delivery in the same month was little changed at 7,680 yuan.