By Claire Leow May 21 (Bloomberg) -- Palm oil futures gained for a second day, poised for a weekly advance, after Malaysian export data showed strong demand from China, the largest consumer. August-delivery palm oil advanced 0.6 percent to 2,491 ringgit ($750) a metric ton at the trading break on the Malaysia Derivatives Exchange, extending yesterday’s biggest jump since April 23. The most-active contract, which rolled over to August this week, is poised for the first gain in three weeks. Malaysia’s palm oil exports rose in the first 20 days of May, led by Chinese orders, two independent surveyors said yesterday. The boost to shipments came after China on April 1 banned imports of Argentine soybean oil. “Exports are running well,” Scott Briggs, agricultural commodities strategist at Australia & New Zealand Banking Group Ltd., said today. Malaysia’s palm oil exports rose 7.1 percent to 775,995 tons in the first 20 days of May, surveyor Intertek said yesterday. Shipments to China and India gained after slumping in April, when they switched to soybean supplies from South America. Exports to China jumped 21 percent to 219,260 tons in the first 20 days, Intertek data showed. Shipments to the European Union, the second-largest destination, dropped 27 percent to 131,508 tons in the first 20 days of this month, Intertek said. The debt crisis in Europe has driven the euro to a four-year low against the dollar, curbing importers’ purchasing power. The Malaysian ringgit has surged 21 percent against the euro this year. Soybeans Gain Societe Generale de Surveillance, another surveyor, estimated exports gained 3.2 percent to 791,971 tons in the first 20 days of May. Shipments to China jumped 44 percent, helping offset a 40 percent slump in imports by EU countries, SGS said. Palm oil for January delivery on the Dalian Commodity Exchange climbed for a second day, adding 0.3 percent to 6,650 yuan ($974) a ton, while soybean oil gained 0.2 percent to 7,580 yuan at the 11:30 a.m. trading break. Soybeans, crushed to produce a rival edible oil, rose for a second day, gaining 0.2 percent to $9.4625 a bushel. Soybeans have lost 9.7 percent this year amid a record global crop. Soybean oil has dropped 8.3 percent. “Key at the moment is the $9.45-$9.50” support level for soybeans in Chicago, Briggs said. The premium of soybean oil over palm oil has widened to $74.64 a ton from a 52-week low of $54.94 three weeks ago, according to Bloomberg data. Crude oil for July delivery, the most-active contract, dropped as much as 2.1 percent to $69.31 a barrel and last traded at $69.98. The most-active contract dropped to less than $65 yesterday for the first time since July 2009 on concern that Europe’s debt crisis may hurt the global economic recovery, curbing energy demand. Vegetable oil prices track crude as they can be used for biofuels. Should the European Union “get tough and start unleashing some money” from its 750 billion euro ($948 billion) support package for sovereign bonds, it “would be bullish” for crude oil, Briggs said. To contact the reporter on this story: Claire Leow in Singapore at cleow@bloomberg.net

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