MARKET DEVELOPMENT
Palm Oil Climbs to One-Month High as Malaysian Inventories Drop
Palm Oil Climbs to One-Month High as Malaysian Inventories Drop
11/02/2014 (Bloomberg) - Palm oil climbed to the highest in more than a month after stockpiles in Malaysia, the world’s second-biggest producer, fell more than analysts’ estimates and on concern dry weather in Brazil may damage soybean crops.
Palm oil for April delivery increased 1.5 percent to 2,616 ringgit ($783) a metric ton on the Bursa Malaysia Derivatives, the highest price at close for most-active futures since Jan. 3. Futures climbed 0.7 percent last week.
Inventories fell 2.6 percent to 1.93 million tons in January from a month earlier, the lowest in three months, the Malaysian Palm Oil Board said today. Reserves were below analysts’ estimates of 1.98 million tons and 2.56 million tons a year earlier. Soybeans posted the biggest weekly gain since August last week after a drought in Brazil threatened crops. Soybeans are crushed to yield an alternative to palm oil, produced mostly in Indonesia and Malaysia.
“Inventories coming in lower-than-expected will lead to some upside in palm,” said Chee Tat Tan, an analyst at Phillip Futures Pte., by phone from Singapore. “Tighter supplies of other vegetable oils due to bad weather in South America will push up prices and could result in some substitution to palm.”
Shipments gained 4 percent to 309,455 tons in the first 10 days of February from the same period a month earlier, Intertek, a cargo surveyor, said today. Exports rose 8.4 percent to 308,485 tons, said SGS (Malaysia) Bhd.
Soybeans were little changed at $13.325 a bushel on the Chicago Board of Trade after climbing for seven days. Soybean oil climbed 1.4 percent to 39.08 cents a pound.
Refined palm oil for May delivery jumped 1.2 percent to close at 5,876 yuan ($970) a ton on the Dalian Commodity Exchange. Soybean oil rose 1 percent to end at 6,678 yuan.
Palm oil for April delivery increased 1.5 percent to 2,616 ringgit ($783) a metric ton on the Bursa Malaysia Derivatives, the highest price at close for most-active futures since Jan. 3. Futures climbed 0.7 percent last week.
Inventories fell 2.6 percent to 1.93 million tons in January from a month earlier, the lowest in three months, the Malaysian Palm Oil Board said today. Reserves were below analysts’ estimates of 1.98 million tons and 2.56 million tons a year earlier. Soybeans posted the biggest weekly gain since August last week after a drought in Brazil threatened crops. Soybeans are crushed to yield an alternative to palm oil, produced mostly in Indonesia and Malaysia.
“Inventories coming in lower-than-expected will lead to some upside in palm,” said Chee Tat Tan, an analyst at Phillip Futures Pte., by phone from Singapore. “Tighter supplies of other vegetable oils due to bad weather in South America will push up prices and could result in some substitution to palm.”
Shipments gained 4 percent to 309,455 tons in the first 10 days of February from the same period a month earlier, Intertek, a cargo surveyor, said today. Exports rose 8.4 percent to 308,485 tons, said SGS (Malaysia) Bhd.
Soybeans were little changed at $13.325 a bushel on the Chicago Board of Trade after climbing for seven days. Soybean oil climbed 1.4 percent to 39.08 cents a pound.
Refined palm oil for May delivery jumped 1.2 percent to close at 5,876 yuan ($970) a ton on the Dalian Commodity Exchange. Soybean oil rose 1 percent to end at 6,678 yuan.