Palm oil futures advance on production outlook

Palm oil futures rose the most in a week on speculation supply from the world’s biggest producing nations may be less than expected on La Nina weather and as rival soybean oil climbed. October-delivery futures jumped as much as 1.4 per cent to 2,529 ringgit ($791) a metric tonne on the Malaysia Derivatives Exchange, the biggest intraday gain since July 22. The most- active contract ended the morning session at 2,522 ringgit.

December-delivery soybean oil gained as much as 0.4 per cent to 39.72 cents a pound, extending a 0.7 per cent gain yesterday. The vegetable oil’s premium over palm oil narrowed to $84.1 a ton from $91.6 yesterday, according to Bloomberg data. November- delivery soybeans rose as much as 0.8 per cent to $9.85 a bushel and traded at $9.80 at 12:03 pm in Singapore. CME Group Inc’s October-delivery palm oil contract, pegged to the Malaysian benchmark price, jumped 2 per cent to $789.25 a tonne. On the Dalian Commodity Exchange, January-delivery palm oil climbed as much as 1.9 per cent to 6,748 yuan ($996) a tonne, while soybean oil surged as much as 1.2 per cent to 7,688 yuan a tonne.