BLBG:Palm Oil Gains as China Data Boosts Prospects for Higher Demand
Palm oil climbed the most in a week after improved manufacturing data from China buoyed speculation that the economy is picking up in the second-largest buyer, lifting commodity prices.
The contract for January delivery advanced as much as 1.3 percent to 2,528 ringgit ($828) a metric ton on the Malaysia Derivatives Exchange, the biggest intraday gain since Oct. 25, and traded at 2,521 ringgit at 12:19 p.m. in Kuala Lumpur. Most- active prices dropped in October for a second straight month.
China’s Purchasing Managers’ Index rose to 50.2 in October from 49.8 in September, the National Bureau of Statistics and China Federation of Logistics and Purchasing said, matching the median forecast in a Bloomberg survey of 30 economists. A reading above 50 indicates expansion. Crude oil, copper and grain prices advanced.
“China has shown some improvement in growth finally, and this is supportive for commodities,” Chung Yang Ker, an analyst at Phillip Futures Pte., said by phone from Singapore. “Prices have fallen in the last few days and this has enticed some bargain-hunting activities at lower levels.”
Soybean oil for December delivery climbed as much as 1.2 percent to 50.74 cents a pound on the Chicago Board of Trade, and was at 50.53 cents Soybeans for January delivery gained as much as 0.9 percent to $15.6275 a bushel, and were at $15.605. Palm and soybean oils are substitutes in food and fuel uses.
Palm oil for May delivery climbed 0.4 percent to 7,076 yuan ($1,134) a ton on the Dalian Commodity Exchange. Soybean oil for delivery in the same month rose 0.4 percent to 9,108 yuan a ton.
To contact the reporter on this story: Swansy Afonso in Mumbai at safonso2@bloomberg.net
To contact the editor responsible for this story: James Poole at jpoole4@bloomberg.net
