PALM oil climbed for a third day on anticipation Malaysia’s palm oil
output in December may be lower than the preceding month, preventing
stockpiles from rising amid a slowdown in exports.
“Producers
are mostly in a wait-and-see mode as there is no pressure to dispose in
a big way,” Ryan Long, a trader at OSK Investment Bank in Kuala Lumpur,
said in an e-mailed reply to questions. “Physical market is trading at
a discount versus futures, this makes them more reluctant to sell.”
March-delivery
palm oil advanced as much as 1.5 per cent to RM2,632 (US$765) a ton on
the Malaysia Derivatives Exchange and traded at RM2,611 at 12:30 p.m.
midday break. Futures have surged 54 percent this year on demand from
India and China, the top users. Prices have more than doubled in the
past decade.
“Technically, a long position is still in favor as prices are trading in an uptrend channel,” Long said.
Palm Oil Rises on Lower Output Expectations
Soybeans for March delivery climbed 30 cents, or 3 per cent, to
US$10.38 a bushel in Chicago yesterday, the biggest gain since Oct 12,
on speculation that fund managers will buy commodities at the start of
2010, anticipating improved demand for materials as the global economy
strengthens. The oilseed has climbed 5.6 per cent this year, partly
because of improved Chinese demand for crops from the U.S.
September-delivery palm oil traded on the Dalian Commodity Exchange gained as much as 1.4 per cent to 7,116 yuan a ton.
Soybean oil, a substitute for palm oil, rose 3 per cent to 40.05 cents a pound in Chicago yesterday. – Bloomberg
Source : Business Times
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