Palm oil advanced on signs of increasing demand from China, the world’s biggest cooking oil user, and as gains in crude oil increased the appeal of vegetable oils as biofuels. June-delivery palm oil climbed as much as 0.4 percent to 3,412 ringgit ($1,117) a metric ton on the Malaysia Derivatives Exchange, and ended the morning session at 3,404 ringgit in Kuala Lumpur. Futures reached 3,422 ringgit on March 16, the highest level for a most-active contract since June 6. China’s palm oil imports from Malaysia rose 16 percent to 152,500 tons in the first 15 days of March from the same period in February, Societe Generale de Surveillance said March 15. Malaysia’s total exports jumped 42 percent to 701,536 tons in the same period, it said. “Signs of demand from China are coming in, demand is slowly strengthening,� said Rajesh Modi, a trader at Singapore- based Sprint Exim Pte. “Stock levels have depleted and they have to start buying again.� Futures also gained alongside advances in other commodities including oil and soybeans, Modi said. Oil advanced for a second day as investors bet that a U.S. economic recovery and Saudi Arabian crude output near the strongest level since at least 1980 signals fuel demand is increasing. Oil for April delivery increased as much as 42 cents to $107.48 a barrel in electronic trading on the New York Mercantile Exchange. Soybeans for May delivery were little changed at $13.7425 a bushel at 12:04 p.m. on the Chicago Board of Trade. It earlier reached $13.78, the highest price for a most-active contract since Sept. 15. Soybean oil for the same month was little changed at 55.46 cents a pound. Palm oil for delivery in September rose 0.7 percent to 8,680 yuan ($1,374) a ton on the Dalian Commodity Exchange. Soybean oil for delivery in the same month gained 0.7 percent to 9,706 yuan a ton. To contact the reporter on this story: Ranjeetha Pakiam in Kuala Lumpur at rpakiam@bloomberg.net To contact the editor responsible for this story: James Poole at jpoole4@bloomberg.net

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