Palm Oil Advances for Third Day as Exports From Malaysia ClimbSwansy Afonso
Palm oil gained for a third day on speculation that rising exports from Malaysia, the world’s second-biggest producer, may pare stockpiles.
The contract for delivery in December, with the biggest open interest and volume, climbed 0.4 percent to 2,355 ringgit ($726) a metric ton on the Bursa Malaysia Derivatives. Palm oil for physical delivery this month was at 2,370 ringgit, data compiled by Bloomberg show.
Shipments from Malaysia rose 14 percent to 732,412 tons in the first 15 days of September from the same period in August, independent surveyor Intertek said today. The country left the tax on exports of crude palm oil unchanged for an eighth month in October to encourage shipments and prevent a build-up in stockpiles during the peak output season.
“The export data has been positive for the market,” said Prasoon Mathur, senior manager at Religare Commodities Ltd. “The concerns about the rising output in Malaysia are limiting the rise in prices.”
Output climbed to 1.74 million tons in August, the highest level since December and stockpiles were at 1.67 million tons, according to data from the Malaysian Palm Oil Board.
Soybeans for November gained 0.7 percent to $13.57 a bushel on the Chicago Board of Trade. Soybean oil for December delivery was little changed at 42.35 cents a pound.
Refined palm oil for January delivery gained 0.4 percent to 5,412 yuan ($885) a ton on the Dalian Commodity Exchange. Soybean oil rose to 7,102 yuan a ton.