Palm oil climbed to the highest level in more than a week as a 10 percent slump in prices this month spurred investor demand and as exports from Malaysia, the second largest producer, increased.
The August-delivery contract climbed 2 percent to 3,130 ringgit ($993) a metric ton, the highest price at close since May 15. The most-active contract climbed 1.1 percent this week.
Exports from Malaysia climbed 10.5 percent to 1.15 million tons in the first 25 days of May from a month earlier, surveyor Intertek said today. Shipments advanced 7.6 percent to 1.1 million tons, Societe Generale de Surveillance said.
“Although the trend is bearish, the fall of close to 600 ringgit has given rise to some good opportunities for bargain buying,” said Gnanasekar Thiagarajan, a director at Commtrendz Risk Management Services Pvt. in Mumbai. “Some support can also be seen from the rise in exports from Malaysia.”
European manufacturing and services output shrank in May, while German business confidence dropped even as Britain’s first-quarter contraction deepened more than estimated. Inconclusive elections in Greece fueled concerns about a euro breakup as countries from Spain to Italy struggle to narrow budget gaps.
“The macroeconomic factors in Europe are ruling sentiment in the market and any delay in a solution for Greece will push palm oil prices lower,” said Chung Yang Ker, an analyst at Phillip Futures Pte. in Singapore.
Soybeans for July delivery climbed 0.3 to $13.805 a bushel on the Chicago Board of Trade. Soybean oil for the same month rose 1 percent to 49.90 cents a pound. Palm oil and soybean oil are both used in foods and fuels.
Palm oil for September delivery gained 0.2 percent to close at 7,942 yuan ($1,252) a ton on the Dalian Commodity Exchange. Soybean oil for the same month retreated 0.2 percent to 9,112 yuan.
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