Palm oil jumps to six-week high
Palm oil climbed to the highest level in six weeks on speculation that increasing exports from Malaysia, the world’s second-biggest producer, may trim inventories during the peak output period.
The contract for delivery in January jumped as much as 1.9 per cent to RM2,446 a metric tonne on the Bursa Malaysia Derivatives, the highest price for most-active futures since September 9, and ended the morning session at RM2,419. Palm for physical delivery in November was at RM2,400 on October 18, data compiled by Bloomberg show.
Shipments gained three perent to 1.03 million tonnes in the first 20 days of this month, surveyor Intertek said today. Reserves dropped 32 per cent to 1.78 million tonnes last month from a record 2.63 million tonnes in December, data from the Malaysian Palm Oil Board shows.
"Expectations are that a mild increase in October production coupled with strong demand would keep stockpiles in check," said Chee Tat Tan, an analyst at Phillip Futures Pte in Singapore. Stronger economic data from China, the world’s largest palm user after India, last week also supported outlook for demand, he said.
In the three months ended September 30, China’s gross domestic product expanded 7.8 per cent from a year earlier, the nation’s statistics bureau said October 18. Factory output advanced last month by 10.2 per cent, in line with projections, a separate report showed.
Soybeans for delivery in November were little changed at US$12.915 a bushel on the Chicago Board of Trade, while soybean oil for December gained 0.6 per cent to 41.93 cents a pound.
Refined palm oil for May delivery gained 2.1 per cent to 6,146 yuan (US$1,008) a tonne on the Dalian Commodity Exchange and soybean oil advanced 1.3 per cent to 7,262 yuan.-- Bloomberg