MARKET DEVELOPMENT
Palm Oil Climbs for Third Day to One-Week High as Ringgit Drops
Palm Oil Climbs for Third Day to One-Week High as Ringgit Drops
24/12/2013 (Bloomberg) - Palm oil advanced for a third day to the highest level in more than a week as a decline in the Malaysian currency improved prospects for exports from the world’s second-largest producer.
The contract for March delivery gained as much as 1.3 percent to 2,617 ringgit ($795) a metric ton on the Bursa Malaysia Derivatives, the highest level for most-active futures since Dec. 12. Prices were at 2,612 ringgit at the midday break. Futures rose 0.9 percent last week, the most since the five days ended Nov. 22.
The ringgit posted a ninth straight weekly drop last week, its longest run of losses in eight years, on speculation inflows will slow as the U.S. Federal Reserve begins curbing stimulus. Shipments from Malaysia fell 12 percent to 883,575 tons in the first 20 days of December from a month earlier, surveyor Intertek said Dec. 20. That was less than the 20 percent drop in the first 10 days of the month, data showed.
“A weaker ringgit makes palm oil more attractive,” for importers, Arhnue Tan, an analyst at Alliance Investment Bank Bhd., said by phone in Kuala Lumpur. Production in Malaysia may total 1.75 million tons to 1.8 million tons this month, down from 1.86 million tons in November, she said.
Indonesia, the largest producer, will keep its export tax unchanged at 12 percent in January while raising the base price for crude oil to $856.46 a ton, Faiz Achmad, director of food at the Industry Ministry, said in a text message today.
Soybean oil for March delivery was little changed at 39.77 cents a pound on the Chicago Board of Trade. Soybeans were little changed at $13.3175 a bushel.
Refined palm oil for May delivery fell 0.4 percent to 6,022 yuan ($992) a ton on the Dalian Commodity Exchange. Soybean oil was little changed at 6,964 yuan.
The contract for March delivery gained as much as 1.3 percent to 2,617 ringgit ($795) a metric ton on the Bursa Malaysia Derivatives, the highest level for most-active futures since Dec. 12. Prices were at 2,612 ringgit at the midday break. Futures rose 0.9 percent last week, the most since the five days ended Nov. 22.
The ringgit posted a ninth straight weekly drop last week, its longest run of losses in eight years, on speculation inflows will slow as the U.S. Federal Reserve begins curbing stimulus. Shipments from Malaysia fell 12 percent to 883,575 tons in the first 20 days of December from a month earlier, surveyor Intertek said Dec. 20. That was less than the 20 percent drop in the first 10 days of the month, data showed.
“A weaker ringgit makes palm oil more attractive,” for importers, Arhnue Tan, an analyst at Alliance Investment Bank Bhd., said by phone in Kuala Lumpur. Production in Malaysia may total 1.75 million tons to 1.8 million tons this month, down from 1.86 million tons in November, she said.
Indonesia, the largest producer, will keep its export tax unchanged at 12 percent in January while raising the base price for crude oil to $856.46 a ton, Faiz Achmad, director of food at the Industry Ministry, said in a text message today.
Soybean oil for March delivery was little changed at 39.77 cents a pound on the Chicago Board of Trade. Soybeans were little changed at $13.3175 a bushel.
Refined palm oil for May delivery fell 0.4 percent to 6,022 yuan ($992) a ton on the Dalian Commodity Exchange. Soybean oil was little changed at 6,964 yuan.