Palm Oil Has First Weekly Gain in Six as Malaysian Exports Climb
Palm oil climbed for a third day, posting the first weekly gain in six, after exports from Malaysia, the largest producer after Indonesia, rebounded as the lowest price in 10 months lured buyers.
The November-delivery contract rose 0.7 percent to close at 2,962 ringgit ($945) a metric ton on the Malaysia Derivatives Exchange, the highest settlement price for the most-active contract since July 31. Futures, which dropped to a 10-month low of 2,820 ringgit on Aug. 14, advanced 2.8 percent this week.
Malaysia’s exports climbed 7.6 percent to 606,449 tons in the first 15 days of August from the same period in July, surveyor Intertek said Aug. 15, while Societe Generale de Surveillance estimated that shipments gained 10.3 percent. Exports shrank 15.3 percent to 1.3 million tons in July from a month earlier, the Malaysian Palm Oil Board said Aug. 10.
“The improved export figures provided a little bit of a boost to the market,” said Donny Khor, associate director for futures and options at OSK Investment Bank Bhd. “There was some short-covering” before the long holidays, he said, referring to investors reversing bets on declining prices.
The exchange will be closed for the Idul Fitri festival on Aug. 20 and 21.
Soybeans for November delivery advanced 0.5 percent to $16.3275 a bushel on the Chicago Board of Trade. Soybean oil for December delivery increased 0.2 percent to 53.76 cents a pound. Palm oil and soybean oil are used in foods and fuels.
Palm oil for January delivery rose 1 percent to close at 7,814 yuan ($1,229) a ton on the Dalian Commodity Exchange. Soybean oil for delivery in the same month gained 0.4 percent to end at 9,690 yuan a ton.