Markets

Palm oil advances

(China Daily)
Updated: 2010-12-24 10:23

KUALA LUMPUR, Malaysia - Palm oil advanced for a fourth day on speculation that China, the top cooking oils user, and other emerging markets will fuel demand for farm commodities in 2011.

The March-delivery contract on the Malaysia Derivatives Exchange gained as much as 1.2 percent to 3,663 ringgit ($1,174) a ton and ended the Thursday morning session at 3,657 ringgit.

Farm commodity prices will extend rallies next year, driven by increased demand from emerging markets and higher oil costs, Rabobank Groep NV said in a note on Tuesday. Palm oil has risen 37 percent this year, set for a second annual gain, on concern that rising demand from China and India, the biggest users, may strain global cooking oil supplies, which have been curbed by rain and drought.

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