Palm oil gained after soybeans surged
the most in more than six months on 13 January on signs that U.S. stockpiles
are tightening, increasing concerns that global oilseed supplies may dwindle.
The contract for delivery in March
advanced as much as 1.8 percent to 2,413 ringgit
($803) a metric ton on the Malaysia Derivatives
Exchange in Kuala Lumpur, before trading at 2,399 ringgit in Kuala Lumpur.
Soybeans rallied 3.3 percent in Chicago, the most at
close since July 5, after a U.S. Department of Agriculture report on Jan. 11
showed inventories fell 17 percent from a year
earlier to 1.966 billion bushels as of Dec. 1, the lowest in nine years.
Exporters sold 120,000 tons to China, the world’s biggest consumer, the USDA said on 13 January.
Production in Malaysia, the largest
grower after Indonesia, usually peaks
in October and November before tapering off. Output this year may match the
all-time high of 18.9 million tons recorded in 2011, Choo
Yuen May, director-general of the Palm Oil Board said. Production totaled 18.8 million tons in 2012 while stockpiles reached a record of 2.63 million tons in December, data
from the board showed.
Refined palm oil for delivery in May
increased 0.5 percent to 6,734 yuan
($1,082) a ton on the Dalian Commodity Exchange.
Soybean oil for May rose 1 percent to 8,618 yuan a ton.