World Market And Commodity News
Malaysian palm oil futures drop to 5-month low
KUALA LUMPUR, Dec 7: Malaysian palm oil futures fell to a near five-month low on Wednesday evening, charting a third straight day of losses, on expectations of rising stockpiles and slowing demand.
The benchmark palm oil contract for February delivery on the Bursa Malaysia Derivatives Exchange was down 1.1 per cent at 2,535 ringgit ($622.39) a tonne at the close of trade, its sharpest daily decline in over a week.
It earlier fell to an intraday low of 2,530 ringgit, its weakest since July 19. Palm is also down 2.6pc so far this week, on track for a sixth week of losses. Traded volumes stood at 40,862 lots of 25 tonnes each on Wednesday evening.
"Expectations of rising stocks is creating a bearish scenario, coupled with a slowdown in exports," said a trader in Kuala Lumpur.
"Buying demand is slow." Another attributed palm's decline to a technical selloff. Palm oil inventories in Malaysia are forecast to rise to the highest in nearly two years at the end of November, as a fall in exports outweighs a decline in production, a Reuters poll showed.
Stockpiles are expected to swell 11.4pc to 2.44 million tonnes from the end of October, while output is expected to fall 3pc on-month to 1.95m tonnes.
Exports are seen falling in November, down 6pc at 1.45m tonnes, the first monthly decline in five months. In other related oils, the January soybean oil contract on the Chicago Board of Trade dropped 0.3pc, while the January soybean oil contract on the Dalian Commodity Exchange fell 0.1pc. -Reuters