MARKET DEVELOPMENT
Palm Ends Near Seven-Week High as Demand Expands Before Ramadan
Palm Ends Near Seven-Week High as Demand Expands Before Ramadan
04/06/2013 (Bloomberg) - Palm oil closed near the highest level in seven weeks on speculation that food demand will rebound before the Muslim fasting month of Ramadan.
The contract for August delivery ended at 2,396 ringgit ($773) a metric ton on the Bursa Malaysia Derivatives. Futures rose 4.9 percent in May, and finished at 2,399 ringgit on May 29, the costliest for the most-active contract since April 8. Palm for physical delivery in June was at 2,360 ringgit, according to data compiled by Bloomberg.
Consumption typically expands during Ramadan, which falls in July this year, as observers break day-long fasts with communal meals. Malaysia’s reserves have dropped 27 percent to 1.93 million tons in April from a record in December, according to data from the nation’s palm oil board.
“We should see pretty healthy demand for crude palm oil,” said Carey Wong, an analyst at OCBC Investment Research Pte. “That should keep the stockpiles coming off further.”
Soybean oil for July delivery climbed 0.5 percent to 48.61 cents a pound on the Chicago Board of Trade, while soybeans advanced 1.8 percent to $15.375 a bushel. Refined palm oil for September delivery increased 0.9 percent to close at 6,192 yuan ($1,010) a ton on the Dalian Commodity Exchange, while soybean oil gained 0.6 percent to end at 7,522 yuan.
The contract for August delivery ended at 2,396 ringgit ($773) a metric ton on the Bursa Malaysia Derivatives. Futures rose 4.9 percent in May, and finished at 2,399 ringgit on May 29, the costliest for the most-active contract since April 8. Palm for physical delivery in June was at 2,360 ringgit, according to data compiled by Bloomberg.
Consumption typically expands during Ramadan, which falls in July this year, as observers break day-long fasts with communal meals. Malaysia’s reserves have dropped 27 percent to 1.93 million tons in April from a record in December, according to data from the nation’s palm oil board.
“We should see pretty healthy demand for crude palm oil,” said Carey Wong, an analyst at OCBC Investment Research Pte. “That should keep the stockpiles coming off further.”
Soybean oil for July delivery climbed 0.5 percent to 48.61 cents a pound on the Chicago Board of Trade, while soybeans advanced 1.8 percent to $15.375 a bushel. Refined palm oil for September delivery increased 0.9 percent to close at 6,192 yuan ($1,010) a ton on the Dalian Commodity Exchange, while soybean oil gained 0.6 percent to end at 7,522 yuan.