MARKET DEVELOPMENT
Palm Oil Gains on Speculation Higher Soybean Oil to Boost Demand
Palm Oil Gains on Speculation Higher Soybean Oil to Boost Demand
02/10/2013 (Bloomberg) - Palm oil advanced for a third day to a two-week high on speculation that an increase in the price of soybean oil, a substitute, will boost demand for the tropical commodity used in food and fuel.
The contract for delivery in December rose 0.4 percent to 2,329 ringgit ($720) a metric ton on the Bursa Malaysia Derivatives, the highest price at close for the most-active futures since Sept. 17. Palm for physical delivery in October was at 2,320 ringgit, data compiled by Bloomberg show.
“Higher or neutral soybean oil and crude oil prices are positive for palm,” said Ivy Ng, an analyst at CIMB Investment Bank Bhd. in Kuala Lumpur. “The reduction in benchmark import price of crude palm oil is positive for consumption in India.”
Soybean oil for delivery in December rose as much as 0.2 percent to 41.20 cents a pound on the Chicago Board of Trade. Crude oil for November delivery increased as much as 0.2 percent to $102.58 per barrel on the New York Mercantile Exchange. India, the largest buyer of palm oil, cut the benchmark import price of crude palm oil to $809 a ton from $827 a ton, the finance ministry said in a statement today.
An increase in exports from Malaysia last month also supported prices, said Donny Khor, deputy director of futures and commodities at RHB Investment Bank Bhd. in Kuala Lumpur. Shipments from Malaysia rose 2.1 percent to 1.53 million tons in September from a month earlier, surveyor Intertek said yesterday.
The contract for delivery in December rose 0.4 percent to 2,329 ringgit ($720) a metric ton on the Bursa Malaysia Derivatives, the highest price at close for the most-active futures since Sept. 17. Palm for physical delivery in October was at 2,320 ringgit, data compiled by Bloomberg show.
“Higher or neutral soybean oil and crude oil prices are positive for palm,” said Ivy Ng, an analyst at CIMB Investment Bank Bhd. in Kuala Lumpur. “The reduction in benchmark import price of crude palm oil is positive for consumption in India.”
Soybean oil for delivery in December rose as much as 0.2 percent to 41.20 cents a pound on the Chicago Board of Trade. Crude oil for November delivery increased as much as 0.2 percent to $102.58 per barrel on the New York Mercantile Exchange. India, the largest buyer of palm oil, cut the benchmark import price of crude palm oil to $809 a ton from $827 a ton, the finance ministry said in a statement today.
An increase in exports from Malaysia last month also supported prices, said Donny Khor, deputy director of futures and commodities at RHB Investment Bank Bhd. in Kuala Lumpur. Shipments from Malaysia rose 2.1 percent to 1.53 million tons in September from a month earlier, surveyor Intertek said yesterday.