(For physical price assessments, see MPOI1.)
Sept. 2 (Bloomberg) -- Palm oil climbed, extending the biggest monthly increase since 2010, as rising shipments from Malaysia signaled a recovery in demand for the world’s most consumed cooking oil.
Palm for November delivery added 0.9 percent to close at 2,426 ringgit ($741) a metric ton on the Bursa Malaysia Derivatives. Palm for physical delivery in September was at 2,460 ringgit, data compiled by Bloomberg show.
Exports from Malaysia climbed 6.5 percent to 1.5 million tons in August from July, according to surveyor Intertek. Shipments gained 7.6 percent, SGS (Malaysia) Sdn. said today. Futures rose 7.5 percent in August, the biggest monthly gain since December 2010, as a weaker ringgit boosted shipments.
“Positive exports should keep inventories relatively flat in the coming months,” said Arhnue Tan, an analyst with Alliance Investment Bank Bhd. “For this month and next month, there could be some festive pre-stocking from India. Prices are still quite low, which could be a catalyst to buy earlier rather than later.”
India, the biggest consumer, usually increases cooking oil imports before the Diwali festival which occurs on Nov. 3 this year. Malaysia’s inventories dropped 37 percent to 1.66 million tons in July from a record in December.
Refined palm oil for January delivery climbed 1.7 percent to close at 5,650 yuan ($924) a ton on the Dalian Commodity Exchange. Soybean oil advanced 1.6 percent to end at 7,288 yuan a ton. The U.S markets are closed today for the Labor Day holiday.
--Editors: Thomas Kutty Abraham, James Poole