Palm oil climbed for a third day on a weaker ringgit and concerns that output in Indonesia and Malaysia, the world’s top growers, will decline further. There are worries that lower fertilizer use last year and a gradual rise in the ratio of old trees versus young ones will hit production, said a trader.Palm output in Malaysia’s southern peninsula fell 5.6% during the first 25 days of June from a month earlier, he said, citing figures from the Southern Peninsular Palm Oil Millers Association. Gains in energy prices and vegetable oil futures in China are also supporting palm, said a trader. A weakness in the Malaysian currency is also helping as the ringgit-denominated commodity has become cheaper for overseas buyers, he said. The ringgit has fallen in six of the past seven sessions. In other markets, crude oil increased for a third day, potentially boosting palm’s biofuel appeal, while refined palm oil and soybean oil futures rose as much as 1.4% and 1%, respectively, on the Dalian Commodity Exchange.
