Palm oil climbs on soybean supply concerns

Palm oil advanced for the first time in five days on concern that hot weather in the US will cut soybean supplies, boosting demand for the tropical commodity used in food and fuel. The November-delivery contract gained 0.6 per cent to 3,022 ringgit per metric ton on the Malaysia Derivatives Exchange. Futures fell 0.4 per cent last week for a fourth weekly loss on concern that a global slowdown may cut demand. "There are concerns that production of some competing crops in the US may decline due to hot weather," said Ivy Ng, an analyst at CIMB Investment Bank Bhd., in Kuala Lumpur. Soybeans advanced for a second day on concern that a week-long crop survey will show signs of declining yields in the US, curbing supply from the world's largest shipper. The Nov-ember-delivery contract gained as much as 0.8 per cent to $13.7975 per bushel on the Chicago Board of Trade, while December-delivery soybean oil rose as much as 0.7 per cent to 56.32 cents a pound.