Palm oil gains most in a week on rising exports, weaker ringgit

Palm oil gains most in a week on rising exports, weaker ringgit
Business & Markets 2013
Written by Bloomberg  
Tuesday, 24 September 2013 18:13

24 Sep 2013 16:06

(Sept. 24 ): Palm rose the most in more than a week on speculation increasing exports from Malaysia may slow an expansion in reserves and as the nation’s currency weakened for a third day, boosting the appeal of ringgit-denominated futures.

Palm for December delivery climbed as much as 0.9 percent to 2,329 ringgit ($727) a metric ton on the Bursa Malaysia Derivatives, the biggest gain for a most-active contract since Sept. 12. Prices were at 2,316 ringgit by 3:58 p.m. in Kuala Lumpur. Futures lost 3.7 percent this month after advancing the most in almost three years in August. Palm for physical delivery in October was at 2,335 ringgit, data compiled by Bloomberg show.

Shipments from the world’s second-largest producer rose 13 percent to 996,377 tons in the first 20 days of September from the same period a month earlier, according to surveyor Intertek. The Malaysian currency fell the most in three months yesterday on speculation that gains last week were excessive.

“The weaker ringgit, and the strong export data have helped lift prices,” said Ivy Ng, an analyst at CIMB Investment Bank Bhd. “Higher exports will absorb the higher supply that’s still to come on stream this month, so the increase in stockpiles may not be as large as some people are projecting.”

Exports in August climbed 7.4 percent, the biggest gain since March, according to the Malaysian Palm Oil Board. Reserves were little changed at 1.67 million tons, about 21 percent lower than a year ago. Stockpiles in Indonesia probably fell 6.4 percent to 2.2 million tons in August, the lowest level since June 2012, according to a Bloomberg survey.

Soybeans for delivery in November rose 0.9 percent to $13.1925 a bushel on the Chicago Board of Trade. Soybean oil for December delivery climbed 0.3 percent to 42.35 cents a pound.

Refined palm oil for January delivery increased 0.9 percent to close at 5,410 yuan ($884) a ton on the Dalian Commodity Exchange. Soybean oil gained 0.7 percent to 7,084 yuan a ton.