09/09/2011 (Bloomberg) - Palm oil gained for a second day as advances in crude oil lifted the appeal of vegetable oils used in food and fuels.

The November-delivery contract advanced as much as 1.1 percent to 3,076 ringgit ($1,030) per metric ton on the Malaysia Derivatives Exchange, and ended the morning trading session at 3,064 ringgit in Kuala Lumpur. Futures have climbed 15 percent in the past year.

Oil traded near the highest close in five weeks in New York on speculation a storm building in the Gulf of Mexico poses a threat to supplies in the U.S., which have already been reduced by an earlier cyclone.

Crude oil’s gains “will give the underlying support” to palm oil, Chandran Sinnasamy, trading head at LT International Futures (M) Sdn., said in Kuala Lumpur.

Crude for October delivery traded at $89.31 a barrel, down 3 cents, in electronic trading on the New York Mercantile Exchange at 12:34 p.m. Singapore time. The contract yesterday surged $3.32 to $89.34, the highest close since Aug. 3.

Palm oil may trade between 3,020 ringgit and 3,070 ringgit a ton today as investors are cautious ahead of a “critical” report on grains and oilseeds from the U.S. Department of Agriculture, Chandran said. The USDA will release its field- based production estimates for corn and soybeans on Sept. 12.

“People are expecting lower production for soybean, that’s why soybean oil is holding very well, and palm oil is taking cues from there,” Rajesh Modi, a trader at Singapore-based Sprint Exim Pte., said by phone.

Soybean futures for November delivery gained as much as 0.2 percent to $14.23 a bushel in Chicago, while soybean oil for delivery in December climbed as much as 0.2 percent to 58.78 cents a pound.

Palm oil for May delivery on the Dalian Commodity Exchange dropped as much as 0.9 percent to 8,960 yuan ($1,403) per ton, while soybean oil for delivery in the same month declined as much as 0.7 percent to 10,416 yuan a ton.