MARKET DEVELOPMENT
Palm Poised for Biggest Weekly Gain in Four as Ringgit Weakens
Palm Poised for Biggest Weekly Gain in Four as Ringgit Weakens
20/12/2013 (Bloomberg) - Palm oil climbed, set for the biggest weekly advance in four, as a decline in the Malaysian currency to the lowest level in three months boosted prospects for exports from the world’s second-largest producer.
The contract for delivery in March advanced as much as 0.7 percent to 2,590 ringgit ($789) a metric ton on the Bursa Malaysia Derivatives and was at 2,584 ringgit at 11:57 a.m. in Kuala Lumpur. Futures gained 0.8 percent this week, the most since the five days ended Nov. 22.
The ringgit headed for a ninth straight weekly drop, its longest run of losses in eight years, on speculation inflows will slow as the U.S. Federal Reserve begins curbing stimulus. Shipments from Malaysia fell 12 percent to 883,575 tons in the first 20 days of December from a month earlier, surveyor Intertek said today. That was less than the 20 percent drop in the first 10 days of the month, data showed.
“The only positive factor has been the ringgit,” Benny Lee, a market strategist at Jupiter Securities Sdn., said by phone from Kuala Lumpur. Demand may increase if prices fell to to 2,500 ringgit, he said.
Soybean oil for March delivery advanced 0.2 percent to 39.70 cents a pound on the Chicago Board of Trade. Soybeans were little changed at $13.1775 a bushel.
Refined palm oil for May delivery advanced 0.4 percent to 6,052 yuan ($997) a ton on the Dalian Commodity Exchange. Soybean oil gained 0.4 percent to 6,978 yuan.
The contract for delivery in March advanced as much as 0.7 percent to 2,590 ringgit ($789) a metric ton on the Bursa Malaysia Derivatives and was at 2,584 ringgit at 11:57 a.m. in Kuala Lumpur. Futures gained 0.8 percent this week, the most since the five days ended Nov. 22.
The ringgit headed for a ninth straight weekly drop, its longest run of losses in eight years, on speculation inflows will slow as the U.S. Federal Reserve begins curbing stimulus. Shipments from Malaysia fell 12 percent to 883,575 tons in the first 20 days of December from a month earlier, surveyor Intertek said today. That was less than the 20 percent drop in the first 10 days of the month, data showed.
“The only positive factor has been the ringgit,” Benny Lee, a market strategist at Jupiter Securities Sdn., said by phone from Kuala Lumpur. Demand may increase if prices fell to to 2,500 ringgit, he said.
Soybean oil for March delivery advanced 0.2 percent to 39.70 cents a pound on the Chicago Board of Trade. Soybeans were little changed at $13.1775 a bushel.
Refined palm oil for May delivery advanced 0.4 percent to 6,052 yuan ($997) a ton on the Dalian Commodity Exchange. Soybean oil gained 0.4 percent to 6,978 yuan.