Palm oil gains as shipment from Malaysia increases

KUALA LUMPUR: 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 per cent to 2,379 ringgit ($750) a tonne 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 on Wednesday, data compiled by Bloomberg show.

Exports from Malaysia gained 6.6 per cent to 7,81,043 tonne in the first 15 days of October from the same period a month earlier, surveyor Intertek said on Wednesday. Demand from India, the biggest importer, may have increased because of the Diwali festival on November 3, according to Mumbai-based Commtrendz Risk Management Services.

“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 per cent to 40.90 cents a pound.