Palm Oil Advances a Third Day as Exports Climb on Ramadan Demand
The contract for September delivery climbed as much as 0.7 percent to 2,480 ringgit ($786) a metric ton on the Bursa Malaysia Derivatives, the highest price for the most-active futures since March 25, and was at 2,476 ringgit at 12:15 p.m. in Kuala Lumpur. Palm for local physical delivery in July was at 2,440 ringgit yesterday, according to data compiled by Bloomberg.
Shipments from Indonesia probably advanced for the first time in four months in May to 1.57 million tons from April, the median of estimates from three plantation executives, a refiner and an analyst compiled by Bloomberg showed. That’s the first gain since an 8.2 percent increase in January, the survey showed. Exports from Malaysia jumped 18 percent to 709,860 tons in the first 15 days of this month, surveyor Intertek said on June 15.
Exports from Malaysia “should increase month-on-month in June due to the expected stock-up ahead of Ramadan,” said Alan Lim Seong Chun, an analyst at Kenanga Investment Bank Bhd. “The news about Indonesian exports gaining should be slightly positive to the market because it shows that the demand for Ramadan is really coming in. Also, northern hemisphere is still in warm weather so palm oil is still usable.”
Demand typically picks up ahead of Ramadan, which falls in July this year, when Muslims break day-long fasts with communal meals. Palm oil clouds in cooler temperatures.
Soybean oil for December delivery advanced 0.2 percent to 47.97 cents a pound on the Chicago Board of Trade, while soybeans for delivery in November climbed 0.5 percent to $12.92 a bushel. Refined palm oil for January delivery gained 0.6 percent to 6,296 yuan ($1,027) a ton on the Dalian Commodity Exchange, while soybean oil for delivery in the same month rose 0.8 percent to 7,696 yuan.
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