Palm oil gains for a third day, longest stretch in three months
Tuesday, 4 August 2009
KUALA LUMPUR, Aug. 3 (Bloomberg): Palm oil futures gained a third day, the longest winning streak in three months, tracking advances in crude oil and soybeans.
Crude oil rose above $70 a barrel for the first time in a month, extending a two-day rally. Vegetable oils, which are used as biofuels, often track crude.
October-delivery palm oil soared as much as 4.84 per cent to 2,295 ringgit ($653) a ton on the Malaysia Derivatives Exchange. Futures have gained as much as 8.6 per cent in three days, the longest such stretch of gains since the period ended May 4. The commodity was at 2,285 ringgit at 4:14 p.m.
November-delivery soybeans surged as much as 5.1 per cent in after-hours trading on the Chicago Board of Trade, extending last week's 7.3 per cent advance. It was at $10.1475 at 3:29 p.m., the first time in a month that it's above $10 a bushel.
The oilseed is crushed for meal for animal feed and oil for cooking, palm oil's main substitute. Soybean oil ended last week with a 27 per cent premium over palm oil, according to Bloomberg.
Investors are looking to record US soybean harvest to make up for shortages caused by the drought in South America. The US, Brazil and Argentina are the largest growers.
Crude oil rose above $70 a barrel for the first time in a month, extending a two-day rally. Vegetable oils, which are used as biofuels, often track crude.
October-delivery palm oil soared as much as 4.84 per cent to 2,295 ringgit ($653) a ton on the Malaysia Derivatives Exchange. Futures have gained as much as 8.6 per cent in three days, the longest such stretch of gains since the period ended May 4. The commodity was at 2,285 ringgit at 4:14 p.m.
November-delivery soybeans surged as much as 5.1 per cent in after-hours trading on the Chicago Board of Trade, extending last week's 7.3 per cent advance. It was at $10.1475 at 3:29 p.m., the first time in a month that it's above $10 a bushel.
The oilseed is crushed for meal for animal feed and oil for cooking, palm oil's main substitute. Soybean oil ended last week with a 27 per cent premium over palm oil, according to Bloomberg.
Investors are looking to record US soybean harvest to make up for shortages caused by the drought in South America. The US, Brazil and Argentina are the largest growers.