Palm Advances Most in a Month as Ringgit Decline Helps ExportsSwansy Afonso
Palm oil climbed the most in a month as a weakening local currency increased the appeal of ringgit-denominated futures, boosting prospects for shipments from Malaysia, the world’s second-biggest producer.
The contract for December delivery advanced 1.9 percent to 2,311 ringgit ($716) a metric ton on the Bursa Malaysia Derivatives, the biggest jump since Aug. 26. Futures gained 0.5 percent this week to post the first such advance in three weeks. Palm for physical delivery in October was at 2,320 ringgit, data compiled by Bloomberg show.
The ringgit posted the biggest weekly drop in three months as concern that U.S. budget talks risk a government shutdown sapped demand for emerging-market assets. Shipments from Malaysia rose 6.5 percent to 1.24 million tons in the first 25 days of September from the same period a month earlier, according to surveyor Intertek.
“The weaker ringgit is the only positive factor for the market now,” said Isha Trivedi, an analyst at PhillipCapital India Pvt., by phone from Mumbai. Palm is heading for a sixth quarterly decline.
Soybeans for delivery in November advanced 0.4 percent to $13.22 a bushel on the Chicago Board of Trade. Soybean oil for December delivery gained 0.5 percent to 42.27 cents a pound.
Refined palm oil for January delivery fell 0.5 percent to close at 5,378 yuan ($879) a ton on the Dalian Commodity Exchange. Soybean oil decreased 0.9 percent to 6,982 yuan.