MARKET DEVELOPMENT
Palm Gains First Day in Three as Rain Delays U.S. Soybean Crop
Palm Gains First Day in Three as Rain Delays U.S. Soybean Crop
05/10/2013 (Bloomberg) - Palm oil advanced for the first time in three days on speculation that rain in the U.S. may delay harvesting of soybeans crushed to make a substitute.
The contract for December delivery climbed as much as 0.7 percent to 2,319 ringgit ($727) a metric ton on the Bursa Malaysia Derivatives, and was at 2,309 ringgit at the midday break in Kuala Lumpur. Futures dropped 1.2 percent in the two days through yesterday on concern increasing output in Malaysia would boost inventories. Palm for physical delivery in October was at 2,320 ringgit yesterday, data compiled by Bloomberg show.
As much as 1 inch (2.5 centimeters) of rain in the past 24 hours halted fieldwork in Nebraska and Minnesota and as much as 2.5 inches in the next four days will stall collection of the soybean crop in half of the Midwest, a T-Storm Weather LLC report showed yesterday. As of Sept. 29, the harvest trailed the average in the previous five years, U.S. government data showed.
“Prices are mildly higher because of the news of a late harvest in the U.S.,” said Arhnue Tan, an analyst at Alliance Investment Bank Bhd. in Kuala Lumpur. The advance “appears to be capped because of the Malaysia Palm Oil Board data coming out next week that could show an increase in stockpiles.” Malaysia is the world’s biggest producer after Indonesia.
Soybean oil for delivery in December fell 0.4 percent to 40.13 cents a pound on the Chicago Board of Trade after climbing 2.3 percent yesterday. Soybeans for November delivery fell 0.4 percent to $12.875 a bushel after a 1.1 percent jump yesterday.
The contract for December delivery climbed as much as 0.7 percent to 2,319 ringgit ($727) a metric ton on the Bursa Malaysia Derivatives, and was at 2,309 ringgit at the midday break in Kuala Lumpur. Futures dropped 1.2 percent in the two days through yesterday on concern increasing output in Malaysia would boost inventories. Palm for physical delivery in October was at 2,320 ringgit yesterday, data compiled by Bloomberg show.
As much as 1 inch (2.5 centimeters) of rain in the past 24 hours halted fieldwork in Nebraska and Minnesota and as much as 2.5 inches in the next four days will stall collection of the soybean crop in half of the Midwest, a T-Storm Weather LLC report showed yesterday. As of Sept. 29, the harvest trailed the average in the previous five years, U.S. government data showed.
“Prices are mildly higher because of the news of a late harvest in the U.S.,” said Arhnue Tan, an analyst at Alliance Investment Bank Bhd. in Kuala Lumpur. The advance “appears to be capped because of the Malaysia Palm Oil Board data coming out next week that could show an increase in stockpiles.” Malaysia is the world’s biggest producer after Indonesia.
Soybean oil for delivery in December fell 0.4 percent to 40.13 cents a pound on the Chicago Board of Trade after climbing 2.3 percent yesterday. Soybeans for November delivery fell 0.4 percent to $12.875 a bushel after a 1.1 percent jump yesterday.