Palm oil headed for the first annual advance in three years as demand increases for the vegetable oil used in everything from noodles to biofuel amid a drop in production in Indonesia, the world's biggest supplier.
The contract for March delivery climbed 0.2 per cent to RM2,635 a metric tonne on the Bursa Malaysia Derivatives by mid-day break, extending gains to 8 percent this year, the first annual gain since 2010.
Palm entered a bull market in November as output fell at plantations in Indonesia and biodiesel demand increased. Prices may advance to RM3,000 by March as demand climbs, according to Dorab Mistry, director at Godrej International Ltd. Indonesian output will decline by 500,000 tonnes to 27.5 million tonnes this year, before rebounding to 30.5 million tonnes in 2014, said Mistry. That would be the first drop since 1998, according to data from the US Department of Agriculture.
"Demand for palm oil has been higher in food as well as fuel this year," said Prathamesh Mallya, an analyst at AnandRathi Commodities Ltd in Mumbai. "Production will be lower in Malaysia in 2014 on rains, which will drive prices higher."
Exports from Malaysia, the world's second-biggest producer, fell 1.1 per cent to 1.43 million tonnes this month from November, Intertek said today.
Soybean oil for March delivery was little changed at 38.95 cents a pound on the Chicago Board of Trade. Soybeans were at US$13.0850 a bushel from US$13.0875 yesterday.
Refined palm oil for May delivery fell 0.5 per cent to 6,036 yuan (US$997) a tonne on the Dalian Commodity Exchange. Soybean oil decreased 0.6 per cent at 6,864 yuan.-- Bloomberg
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MQ Trader 4226 views | 4 d ago
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New IPO: The largest mini-market player and a leading groceries retailer in Malaysia, 99 Speed Mart Retail Holdings Bhd aims to list on the Main Market!
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bluebird
fuyoohh....RM3000/ton by March 2014...
2013-12-31 15:40