MARKET DEVELOPMENT
Palm Oil Advances First Time in Four Days as Exports Increase
Palm Oil Advances First Time in Four Days as Exports Increase
01/07/2013 (Bloomberg) - Palm oil gained for the first time in four days as exports from Malaysia, the world’s second-largest producer, climbed ahead of the Muslim fasting month of Ramadan.
The contract for September delivery advanced as much as 1.2 percent to 2,372 ringgit ($750) a metric ton on the Bursa Malaysia Derivatives, and ended the morning session at 2,367 ringgit in Kuala Lumpur. Prices lost 2.2 percent last month to end at the lowest level for most-active futures since May 21. Palm for local physical delivery in July was at 2,355 ringgit on June 28, data compiled by Bloomberg show.
Shipments from Malaysia gained 7 percent to 1.35 million tons in June from a month earlier, surveyor Intertek said today. Consumption typically increases during Ramadan, which is scheduled to begin around July 9 this year, when observers break day-long fasts with communal meals.
“The increase in exports will be a definitive factor until Ramadan,” said Prathamesh Mallya, an analyst at AnandRathi Commodities Ltd. in Mumbai. “After Ramadan, you’ll see no more festivals until October. I would see slight demand still being there -- demand will remain constant, but incremental demand will not be there.”
Soybean oil for December delivery gained 1 percent to 45.57 cents a pound on the Chicago Board of Trade, rebounding from the lowest close for the most-active futures since October 2010 on June 28, while soybeans for delivery in November were little changed at $12.515 a bushel.
Refined palm oil for January delivery gained 1.4 percent to 5,924 yuan ($966) a ton on the Dalian Commodity Exchange, while soybean oil advanced 1.3 percent to 7,390 yuan.
The contract for September delivery advanced as much as 1.2 percent to 2,372 ringgit ($750) a metric ton on the Bursa Malaysia Derivatives, and ended the morning session at 2,367 ringgit in Kuala Lumpur. Prices lost 2.2 percent last month to end at the lowest level for most-active futures since May 21. Palm for local physical delivery in July was at 2,355 ringgit on June 28, data compiled by Bloomberg show.
Shipments from Malaysia gained 7 percent to 1.35 million tons in June from a month earlier, surveyor Intertek said today. Consumption typically increases during Ramadan, which is scheduled to begin around July 9 this year, when observers break day-long fasts with communal meals.
“The increase in exports will be a definitive factor until Ramadan,” said Prathamesh Mallya, an analyst at AnandRathi Commodities Ltd. in Mumbai. “After Ramadan, you’ll see no more festivals until October. I would see slight demand still being there -- demand will remain constant, but incremental demand will not be there.”
Soybean oil for December delivery gained 1 percent to 45.57 cents a pound on the Chicago Board of Trade, rebounding from the lowest close for the most-active futures since October 2010 on June 28, while soybeans for delivery in November were little changed at $12.515 a bushel.
Refined palm oil for January delivery gained 1.4 percent to 5,924 yuan ($966) a ton on the Dalian Commodity Exchange, while soybean oil advanced 1.3 percent to 7,390 yuan.