Palm oil in Malaysia recovers as soybeans, soybean oil advance

Palm oil futures rose after higher soybean demand forecast from China and lower projected production lifted prices for the oilseed and its product. July-delivery palm oil rose as much as 0.4 per cent to 2,516 ringgit ($781) a metric tonne on the Malaysia Derivatives Exchange, and was at 2,504 at the 12:30 pm trading break. Soybean oil for July delivery in Chicago rose 0.1 per cent to 38.34 cents a pound, increasing its premium over palm oil for a second day. Soybeans rose for a fourth day after the US Department of Agriculture yesterday forecast China will import a record 46 million metric tonnes in the year ending October 1, and that global output will decline 3 per cent next season. Palm oil fell yesterday amid reports of slowing exports from Malaysia.

Palm oil jumped 0.7 per cent to 6,790 yuan ($983) a ton on the Dalian Commodity Exchange at the 11:30 am trading break. Soybean oil advanced 0.8 per cent to 7,730 yuan a tonne.