(For physical price assessments, see MPOI1.)
Aug. 28 (Bloomberg) -- Palm oil gained for a sixth day, the best winning streak since December 2010, as crude oil at two- year high boosted the appeal of biofuels and hot weather in the U.S. threatened the world’s biggest soybean crop.
Palm oil for November delivery rose 1 percent to 2,477 ringgit ($743) a metric ton on the Bursa Malaysia Derivatives, the highest price at close for a most-active contract since March 22. A sixth day of gains makes it the best run since a seven-day streak through Dec. 28, 2010. Palm for physical delivery in September was at 2,500 ringgit, data compiled by Bloomberg show.
Very hot and mostly dry weather is expected for most of the U.S. Midwest in the next five days, adding stress to some crops, DTN said yesterday. Soybeans, which can be crushed to make soybean oil, touched a two-month high in Chicago yesterday. West Texas Intermediate crude surged to the highest since May 2011 on concern that conflict in Syria may disrupt oil supplies. A record 5.6 million tons of palm was used for fuel in 2012, according to Hamburg-based research company Oil World.
“Crude oil prices have gone up quite a bit and this would make biodiesel more attractive,” Ivy Ng, an analyst at CIMB Investment Bank Bhd., said by phone from Kuala Lumpur. Concerns about the U.S. soybean crop are also helping palm oil, she said.
Soybeans for November delivery rose 0.2 percent to $13.7325 a bushel on the Chicago Board of Trade. Prices climbed to $14.095 yesterday, the highest since June 6, before closing 1.4 percent lower. Soybean oil for delivery in December gained 0.2 percent to 44.61 cents a pound.
Refined palm oil for January delivery fell 1.8 percent to end at 5,724 yuan ($935) a ton on the Dalian Commodity Exchange. Soybean oil declined 1.1 percent to close at 7,332 yuan a ton.
--Editor: Thomas Kutty Abraham