Palm oil climbs for second day
Palm oil advanced for a second day on speculation that rains in the US may delay harvesting of soybeans, crushed to produce a substitute oil.
Palm for December delivery gained as much as 0.5 per cent to RM2,316 a metric tonne on the Bursa Malaysia Derivatives and was at RM2,311 at 11.41am in Kuala Lumpur. Palm for physical delivery in October was at RM2,320 on October 4, data compiled by Bloomberg show.
Soybean futures in Chicago jumped for a fourth day to the highest level in a week on speculation harvest may be delayed. Rain in the east of the US over the weekend may be disruptive to harvesting and areas in the north-central region may be affected by rain later this week, forecaster DTN said on October 4.
"The weather in the US has raised concerns that the crop may not be as much as expected earlier," said Ivy Ng, an analyst at CIMB Investment Bank Bhd in Kuala Lumpur. "Stockpiles in Malaysia are expected to have climbed last month, but as long as it does not break the 2-million tonnes mark, the market should be relieved."
Inventories probably expanded 13 per cent to 1.89 million tonnes last month, the highest since April, according to a Bloomberg News survey. Output climbed 15 per cent to 2 million tonnes, matching the record output in September 2012, the survey showed, while exports gained two per cent to 1.55 million tonnes. The Malaysian Palm Oil Board will publish the data on October 10.
Soybeans for delivery in November rose as much as 0.8 per cent to US$13.05 a bushel on the Chicago Board of Trade, the highest since September 30, before trading at US$13.0025. Soybean oil for December delivery slid 0.3 per cent to 40.11 cents a pound.-- Bloomberg