Palm climbs to one-month high
Palm oil jumped to the highest level in a month after data showed that inventories and output in Malaysia, the world’s second-largest producer, expanded less than analysts expected.
The contract for delivery in December climbed as much as one per cent to RM2,392 a metric tonne on the Bursa Malaysia Derivatives, the highest for most-active futures since September 9, and traded at RM2,386 at 3.59pm in Kuala Lumpur. Palm for physical delivery in October was at RM2,360 today, data compiled by Bloomberg show.
Inventories rose seven per cent to 1.78 million tonnes from August, said the Malaysian Palm Oil Board. While that’s the highest since May and the biggest jump since September last year, it’s less than the median estimate of 1.89 million tonnes in a Bloomberg survey. Output gained 10 per cent to 1.91 million tonnes, versus the expected 2 million tonnes. Shipments rose to 1.61 million tonnes, more than the estimated 1.55 million tonnes.
"The stockpiles figure is below our forecasts due to lower-than-expected production and higher exports as well as domestic consumption," said Ivy Ng, an analyst at CIMB Investment Bank Bhd, in Kuala Lumpur. "This is positive as it reveals stockpiles remain manageable and are not rising as fast as earlier projections."
Exports from Malaysia advanced 17 per cent to 542,274 tonnes in the first 10 days of October compared with the same period a month earlier, surveyor Intertek said today.
Soybeans for delivery in November gained 0.4 per cent to US$12.9275 a bushel on the Chicago Board of Trade, while soybean oil for December rose 0.7 per cent to 40.94 cents a pound.
Refined palm oil for January delivery increased 1.5 per cent to end at 5,610 yuan (US$917) a tonne on the Dalian Commodity Exchange and soybean oil advanced 0.6 per cent to close at 7,096 yuan.-- Bloomberg