Palm oil rebounded from the lowest level in eight months on speculation
lower soybean acreage in the US, the world’s biggest exporter, will
reduce global vegetable oil supplies.
The September-delivery contract advanced as much as 1.6 per cent to
RM3,084 per metric ton on the Malaysia Derivatives Exchange and was at
RM3,073 at 11.44 am in Kuala Lumpur.
Futures fell 2.6 per cent last week to close at the lowest level since October 26.
Soybean futures rose the most in four weeks on July 1 on speculation
that reduced Midwest seeding will trim supplies from the US Planting
dropped to 75.208 million acres, less than analysts expected and below
the 76.609 million estimated in March, as farmers switched to corn, the
US Department of Agriculture data showed on June 30.
Soybean futures for November delivery advanced 1.4 per cent to US$13.125 a bushel on July 1, the biggest gain since June 2.
US markets are closed today for the Independence Day holiday.
“The USDA national acreage report was actually bullish for
soybeans,” Ker Chung Yang, an analyst at Phillip Futures Pte, said by
phone from Singapore. “Investors have a clearer picture on the report
now.”
Gains in palm oil today may be capped as the Chicago Board of Trade is closed, Ker said.
January-delivery palm oil on the Dalian Commodity Exchange climbed
as much as 1.1 per cent to 8,882 yuan a ton. Soybean oil for delivery in
the same month rose as much as 1.2 per cent to 10,066 yuan a ton. –
Bloomberg
