China Recovery Boosts Palm Oil to One-week High

Palm oil advanced for a second day to the highest level in almost one week after China, the world's largest consumer of cooking oils, showed signs of recovery as industrial production and retail sales accelerated in September.

The contract for January delivery jumped 1% to 2,496 ringgit ($822) a metric tonne on the Malaysia Derivatives Exchange in Kuala Lumpur, the highest price at close since October 12. Futures have fallen 21% this year as stockpiles increased and a slowdown curbed demand from Europe and China.

Gold eased a bit as the euro failed to maintain gains made after a well received auction of Spanish debt, but prices remained in a narrow range ahead of a meeting of euro zone policymakers later in the day. Spot gold fell 0.2% on the day to $1,746.89 per ounce by 1030 GMT. US gold futures slipped $4.60 an ounce to $1,748.40.

Spot gold prices traded higher in major cities in India. In Mumbai market, standard gold (995 purity) was up Rs 715 at Rs 31,270 and pure gold (999 purity) was up Rs 715 at Rs 31,410. The December contract for gold on MCX traded at Rs 31,230 per 10 gm, up by Rs 90. Indian gold prices are generally determined by international prices. During festival seasons, local demand and currency movement also influence the prices to some extent. The rupee plays an important role in determining the landed cost of the dollar-quoted yellow metal. Rupee closed at 53.41 against the dollar.

Soya beans advanced for a third day on speculation that demand from China, the largest buyer, may be sustained as the world's second-biggest economy begins to stabilise.