Palm oil down as demand from India may slow
KUALA LUMPUR: Palm oil fell for a second day on speculation that India slowed purchases as the world’s biggest consumer harvests a record oilseed crop.
The contract for delivery in December dropped 0.4 percent to 2,370 ringgit ($746) a metric ton on the Bursa Malaysia Derivatives at the midday break in Kuala Lumpur. Palm for physical delivery in October was at 2,390 ringgit on Oct. 11, data compiled by Bloomberg show.
India’s imports probably fell 22 percent to 650,000 tons in September from a year earlier, according to a Bloomberg survey. The Solvent Extractors’ Association of India will release data today. India is on the cusp of the biggest oilseed crop ever as production of soybeans and peanuts increases, according to Atul Chaturvedi, chief executive officer of Adani Wilmar Ltd.
“India’s harvest is on and we expect a larger crop in the coming days,” Prathamesh Mallya, an analyst at AnandRathi Commodities Ltd., said by phone from Mumbai. “Domestic availability of the soybean crop will ensure that demand for palm remains lower when compared to the same time last year.”
Palm oil futures advanced 3.3 percent last week, the biggest increase since the five days ended Aug. 16. Financial markets are closed in Malaysia tomorrow for a public holiday.
“Players are reluctant to take up new positions,” ahead of the holiday, said Donny Khor, deputy director of futures and commodities at RHB Investment Bank Bhd. in Kuala Lumpur. “Some Malaysian traders are taking this opportunity to go on leave.”
Soybeans for delivery in November gained 0.5 percent to $12.73 a bushel on the Chicago Board of Trade, while soybean oil for December climbed 0.7 percent to 40.55 cents a pound.
Refined palm oil for January delivery gained 1 percent to 5,676 yuan ($928) a ton on the Dalian Commodity Exchange and soybean oil was little changed at 7,062 yuan a ton. -- BLOOMBERG