Palm oil climbed, paring a fourth weekly loss, as an 11 percent decline in prices this month spurred investor demand and as exports from Malaysia, the second largest producer, increased.
The August-delivery contract climbed as much as 0.6 percent to 3,087 ringgit ($975) a metric ton and ended the morning session at 3,080 ringgit in Kuala Lumpur. The most active contract has slid 0.5 percent this week, set for the longest losing streak since the five days ended Aug. 26.
Palm oil exports from Malaysia climbed 10.5 percent to 1.15 million tons in the first 25 days of May from a month earlier, independent surveyor Intertek said today.
“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 was little changed at $13.7625 a bushel on the Chicago Board of Trade. Soybean oil for the same month rose 0.2 percent to 49.53 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 7,938 yuan ($1,251) a ton on the Dalian Commodity Exchange. Soybean oil for the same month retreated 0.2 percent to 9,114 yuan.
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