MARKET DEVELOPMENT
Palm Climbs to One-Month High as Inventories Less Than Estimated
Palm Climbs to One-Month High as Inventories Less Than Estimated
10/10/2013 (Bloomberg) - Palm oil jumped to the highest level in a month after data showed that inventories and output in Malaysia, the world’s second-largest producer, expanded less than analysts expected.
The contract for delivery in December climbed as much as 1 percent to 2,392 ringgit ($748) a metric ton on the Bursa Malaysia Derivatives, the highest for most-active futures since Sept. 9, and traded at 2,386 ringgit at 3:59 p.m. in Kuala Lumpur. Palm for physical delivery in October was at 2,360 ringgit today, data compiled by Bloomberg show.
Inventories rose 7 percent to 1.78 million tons from August, said the Malaysian Palm Oil Board. While that’s the highest since May and the biggest jump since September last year, it’s less than the median estimate of 1.89 million tons in a Bloomberg survey. Output gained 10 percent to 1.91 million tons, versus the expected 2 million tons. Shipments rose to 1.61 million tons, more than the estimated 1.55 million tons.
“The stockpiles figure is below our forecasts due to lower-than-expected production and higher exports as well as domestic consumption,” said Ivy Ng, an analyst at CIMB Investment Bank Bhd., in Kuala Lumpur. “This is positive as it reveals stockpiles remain manageable and are not rising as fast as earlier projections.”
Exports from Malaysia advanced 17 percent to 542,274 tons in the first 10 days of October compared with the same period a month earlier, surveyor Intertek said today.
Soybeans for delivery in November gained 0.4 percent to $12.9275 a bushel on the Chicago Board of Trade, while soybean oil for December rose 0.7 percent to 40.94 cents a pound.
Refined palm oil for January delivery increased 1.5 percent to end at 5,610 yuan ($917) a ton on the Dalian Commodity Exchange and soybean oil advanced 0.6 percent to close at 7,096 yuan.
The contract for delivery in December climbed as much as 1 percent to 2,392 ringgit ($748) a metric ton on the Bursa Malaysia Derivatives, the highest for most-active futures since Sept. 9, and traded at 2,386 ringgit at 3:59 p.m. in Kuala Lumpur. Palm for physical delivery in October was at 2,360 ringgit today, data compiled by Bloomberg show.
Inventories rose 7 percent to 1.78 million tons from August, said the Malaysian Palm Oil Board. While that’s the highest since May and the biggest jump since September last year, it’s less than the median estimate of 1.89 million tons in a Bloomberg survey. Output gained 10 percent to 1.91 million tons, versus the expected 2 million tons. Shipments rose to 1.61 million tons, more than the estimated 1.55 million tons.
“The stockpiles figure is below our forecasts due to lower-than-expected production and higher exports as well as domestic consumption,” said Ivy Ng, an analyst at CIMB Investment Bank Bhd., in Kuala Lumpur. “This is positive as it reveals stockpiles remain manageable and are not rising as fast as earlier projections.”
Exports from Malaysia advanced 17 percent to 542,274 tons in the first 10 days of October compared with the same period a month earlier, surveyor Intertek said today.
Soybeans for delivery in November gained 0.4 percent to $12.9275 a bushel on the Chicago Board of Trade, while soybean oil for December rose 0.7 percent to 40.94 cents a pound.
Refined palm oil for January delivery increased 1.5 percent to end at 5,610 yuan ($917) a ton on the Dalian Commodity Exchange and soybean oil advanced 0.6 percent to close at 7,096 yuan.