20 Jun 2012
KUALA LUMPUR -- Palm oil climbed the most in almost 19 months on concern that the US soybean crops may be damaged by dry weather, lowering global supplies and increasing demand for alternative cooking oils.
The September-delivery contract advanced as much as 3.6% to 3,053 ringgit or US$966 a metric ton on the Malaysia Derivatives Exchange, the biggest intraday gain for the most- active contract since November 2010. Futures ended the morning session at 3,038 ringgit in Kuala Lumpur.
The eastern-Midwest region in the US will probably not have much rainfall next week, Telvent DTN Inc. said yesterday, citing indicators from computer models used to predict weather. Crop conditions in the US deteriorated in the two weeks through June 17, according to the Department of Agriculture.
"The weather concerns are there for soybean crops," said Rajesh Modi, a trader at Singapore-based Sprint Exim Pte. "Palm oil and soybeans are also taking cues from external factors."
World leaders told Europe to pull together to overcome its debt crisis at a Group of 20 summit in Mexico, endorsing a road map for tighter integration to cut borrowing costs.
The U.S. central bank is expected to announce added stimulus measures as soon as this week's meeting, according to 12 of the 21 primary dealers who trade with the Fed. "People are expecting that a QE3 may come in," said Modi. "A short-term rebound was also due."
Soybeans for November delivery rose 0.5% to US$13.91 a bushel on the Chicago Board of Trade, extending yesterday's 3.4% gain. Soybean oil for December rose 0.2% to 51.40 cents a pound. Palm oil and soybean oil are both used in foods and fuels.
Palm oil for January delivery gained 2.3% to 7,994 yuan or US$1,258 a ton on the Dalian Commodity Exchange. Soybean oil for delivery in the same month advanced 1.6% to 9,466 yuan a ton. (Bloomberg/T03/aph)By : Telvent DTN IncSourche : bisnis.com