Palm Gains First Time in Three Days as Malaysia’s Exports Climb

(Bloomberg) – Palm oil advanced for the first time in three days after data showed that shipments increased from Malaysia, the world’s second-largest producer.

The contract for delivery in December advanced as much as 0.7 percent to 2,379 ringgit ($750) a metric ton on the Bursa Malaysia Derivatives, and was at 2,376 ringgit by the midday break. Palm for physical delivery in November was at 2,380 ringgit today, data compiled by Bloomberg show.

Exports from Malaysia gained 6.6 percent to 781,043 tons in the first 15 days of October from the same period a month earlier, surveyor Intertek said today. Demand from India, the biggest importer, may have increased because of the Diwali festival on Nov. 3, according to Mumbai-based Commtrendz Risk Management Services Pvt.

“We’re seeing possible festival demand from India,” said Gnanasekar Thiagarajan, a director at Commtrendz. “Palm is the preferred choice of oil, especially in the festival season.”

Soybeans for delivery in November were little changed at $12.6825 a bushel on the Chicago Board of Trade, while soybean oil for December climbed 0.6 percent to 40.90 cents a pound.

Refined palm oil for January delivery was little changed at 5,678 yuan ($931) a ton on the Dalian Commodity Exchange and soybean oil for May delivery was unchanged at 7,074 yuan a ton.