06/10/2010 (Bloomberg) - Palm oil climbed for a second day, mirroring a global stocks and commodities rally, on optimism that demand for the vegetable oil may increase as central banks take steps to spur economic growth and boost liquidity.

December-delivery futures rose 0.9 percent to 2,730 ringgit ($883) a metric ton on the Malaysia Derivatives Exchange. Prices advanced 1.5 percent yesterday, the most in 11 days.

Equity markets rallied around globally after the Bank of Japan unexpectedly cut interest rates yesterday and pledged to buy as much as $60 billion of assets to keep the economy from faltering, sparking speculation other central banks would follow suit. The MSCI Asia Pacific Index hit a 26-month high on hopes similar moves would support the global economic recovery.

“People are more upbeat about the outlook for the economic growth as central banks are lowering rates and easing liquidity,” said Ivy Ng, an analyst at CIMB Investment Bank Bhd. “When the growth outlook is good every asset class tends to do well, including commodities.” Sustained demand would keep palm oil stockpiles from rising, she added.

Gold for immediate delivery climbed to a record $1,349.80 an ounce. Silver extended gains to as high as $23.0763 an ounce, the highest price since 1980, and tin, the best performer on the London Metal Exchange this year, reached a record $26,790 a metric ton. The dollar index fell to 77.628 after losing 0.9 percent yesterday. A weaker U.S. currency lifts the appeal of commodities as an alternative investment.

‘Less Bearish’
“Palm oil exports have been quite strong last month and people are less bearish about stockpiles now,” CIMB’s Ng said.

Shipments of Malaysian palm oil in September climbed 30 percent from August to 1.5 million tons, according to cargo surveyor Societe Generale de Surveillance. Rival Intertek put the gain at 21 percent.

Malaysian stockpiles advanced 23 percent to 1.72 million tons in August from July, ending seven months of losses, the nation’s palm oil board said Sept. 15. Stockpiles may be around 1.73 million tons at the end of September, Ng said.

November-delivery soybeans in Chicago rose as much as 0.3 percent to $10.7525 a bushel, while December-delivery soybean oil jumped as much as 0.6 percent to 44.07 cents a pound in Asia. Soybean and palm oils are direct substitutes.

CME Group Inc.’s December palm oil contract, pegged to the Malaysian benchmark price, climbed as much as 1.1 percent to $881.50 a ton. The Dalian Commodity Exchange is closed to mark China’s National Day celebrations.