By Claire Leow June 15 (Bloomberg) -- Palm oil futures were little changed after posting the biggest gain in three weeks on concern supplies may rise in coming months. Palm oil for August delivery was little changed at 2,409 ringgit ($742) a metric ton on the Malaysia Derivatives Exchange, after gaining 1 percent yesterday. “There is a limited upside to crude palm oil prices,” said an AmResearch report today. “This is due to rising soybean supply from South America and soft crude oil prices.” Crude oil in New York for July delivery was little changed at $75.14 a barrel at 1:05 p.m. Singapore time. Malaysia’s palm oil exports rose 1.5 percent in the first 15 days of June, as shipments to China and the EU offset a drop in Indian demand, independent market surveyor Intertek said. A total of 600,921 tons of the commodity were tracked on June 1 to 15, from 591,887 tons in the same period in May, Intertek said today. Exports to China, the biggest user, climbed 28 percent, while exports to Europe, the second-largest destination, rose 29 percent. Sales to India and the subcontinent dropped 39 percent, the data showed. Chinese demand for palm oil rose for seasonal reasons, such as the Dragon Boat Festival this week, and a switching of supplies after a ban on Argentine soybean oil since April 1. The ringgit, which rose 5.6 percent against the euro in May, rose 0.5 percent in the first 15 days of June, Bloomberg data show. A stronger ringgit reduces the appeal for European buyers. Record High Palm-oil supply typically rises in the second half of the year. This year, South American supplies of soybean oil are at a record high. Soybeans on the Chicago Board of Trade were little changed at $9.1525 a bushel. Chicago soybean oil dropped for the first time in six days, losing 0.3 percent to 37.29 cents a pound, reducing the premium over palm oil to 32 percent below the 12- month average, according to Bloomberg data. CME Group Inc.’s September-delivery palm oil contract, which is pegged to the Malaysian benchmark price, dropped 0.2 percent to $730 a ton. The Dalian Commodity Exchange is closed until Thursday. Palm oil is poised to fall below 2,400 ringgit a ton on higher supplies from soybean and palm-oil producers, coupled with lower demand if the European credit crisis hurts purchasing power, a Kenanga Investment Bank Bhd. report said yesterday. To contact the reporter on this story: Claire Leow in Singapore at cleow@bloomberg.net

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