drought in South America may reduce global
Planting of soybeans in Argentina has been delayed because of
adverse weather, according to the Argentine Association of Regional
Agricultural Experimentation Consortia. The country is
the largest exporter of soybean oil, a substitute for palm oil.
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February-delivery contract lost 0.4 per cent to RM2,472 a metric ton on
the Malaysia Derivatives Exchange amid concern potential losses from
Dubai World, a state holding company with US$59 billion of liabilities,
may spread. The most- active futures contract advanced 12 per cent this
month. Trading resumed yesterday after a public holiday on November 27.
Palm oil closed at the highest level in more than three months the
previous day.
September-delivery
palm oil rose 3.5 per cent, the biggest one-day gain in more than three
months, to close at 6,756 yuan (US$989) a ton on the Dalian Commodity
Exchange.
The premium of soybean oil in Chicago over palm oil in
Malaysia, the benchmarks, averaged US$173.55 a ton in November, higher
than the year-to-date average of US$163.98 a ton,
according to Bloomberg data.
“If
you look at the price of soybean oil and palm oil, the gap is
expanding,” providing support for palm oil, the cheaper alternative,
Ben Santoso, a plantation analyst at DBS Vickers Securities (Singapore)
Pte, said by phone yesterday.
Soybean oil for January delivery
in Chicago, the benchmark, rose as much as 0.8 per cent to 40.85 cents
a pound and traded at 40.57 cents at 6.19 pm Singapore time. Soybeans
gained as
much as 1.2 per cent to US$10.66 a bushel to the highest since August 13.
Traders
are seeking clues from November palm oil exports, said Ryan Long, a
trader at OSK Investment Bank in Kuala Lumpur, by e-mail. Preliminary
data was conflicting.
Malaysia’s palm oil exports rose 1.8 per
cent in November to 1.46 million tons compared with the previous month,
estimated Societe Generale de Surveillance, an independent cargo surveyor.
Shipments fell 0.3 per cent in November to 1.42 million tons from the previous month, another surveyor Intertek said.
Official data normally comes from the country’s palm oil board on the 10th of each month.
Exports had gained 12 per cent in October to 1.48 million tons, it said November 10.
The
“Dubai issue provided a good excuse to take profit” after November’s
rally, Long said. A level of “RM2,420 is a correction target.”
The
Central Bank of the United Arab Emirates said yesterday it “stands
behind” the country’s lenders, allowing them to borrow money for half a
percentage point above three-month local
interest rates.
Source : Business Times
