05/10/2010 (Bloomberg) - Palm oil climbed the most in 11 days on speculation that shipments revived in September, potentially keeping stockpiles from rising above levels in August.

December-delivery futures jumped 1.5 percent to 2,705 ringgit ($873) a metric ton on the Malaysia Derivatives Exchange, the biggest advance in 11 days. The price dropped 2.5 percent yesterday, the most since Jan. 26.

“Inventories might not rise” as crude palm oil exports rebounded in September, said Sunaina Dhanuka, an analyst with Macquarie Capital Securities (Malaysia) Sdn. Shipments have increased 2.4 percent so far this year compared with a 1.8 percent gain in production, she said.

Malaysian stockpiles advanced 23 percent to 1.72 million tons in August from July, ending seven months of losses, the nation’s palm oil board said Sept. 15. Production rose for a fourth month in August to 1.61 million tons while exports fell 18 percent, the board said. Data for September is due next week.

Shipments in September climbed 30 percent from August to 1.5 million tons, Societe Generale de Surveillance said in an initial estimate last week. Intertek put the gain at 21 percent.

November-delivery soybeans in Chicago rose for the first time in three days, gaining as much as 0.6 percent to $10.60 a bushel at 6:12 p.m. Singapore time.

December-delivery soybean oil, which lost 3.6 percent in the past two days, gained as much as 0.6 percent to 43.70 cents a pound in Asia. Soybean and palm oils are direct substitutes.

Palm oil prices are expected to be about 2,600 ringgit for the rest of this year, the Business Times reported today, citing Malaysian Palm Oil Council Chief Executive Officer Yusof Basiron.

Maybank Investment Bank Bhd. raised its 2010-2011 forecast for crude palm oil to 2,600 ringgit from 2,400 ringgit on concern that vegetable oil output could switch from surplus to deficit. Global cooking oils may have a shortage of 800,000 tons, from a surplus of 200,000 tons, analyst Tan Chi Wei said.

CME Group Inc.’s December palm oil contract, pegged to the Malaysian benchmark price, dropped 0.9 percent to $857.25 a ton. The Dalian Commodity Exchange is closed to mark China’s National Day celebrations.