Palm Oil Drops Most in Week on Concern Export Demand May Decline

By Swansy Afonso - Dec 19, 2012 12:03 PM GMT+0800

Palm oil declined by the most in a week after China canceled some soybean purchases, signaling weaker demand for vegetable oils in the world’s biggest buyer.

The contract for March delivery slid as much as 1.2 percent to 2,313 ringgit ($758) a metric ton on the Malaysia Derivatives Exchange, the biggest intraday fall since Dec. 12. The price was at 2,318 ringgit at 12:01 p.m. in Kuala Lumpur.

U.S. exporters said 420,000 tons of soybeans registered for delivery before Sept. 1 were canceled, including 300,000 tons bound for China, according to the U.S. Department of Agriculture. Palm oil, which competes with soy, is heading for a 27 percent drop this year, the worst annual loss since the financial crisis in 2008, as stockpiles in Malaysia have climbed to a record.... Read the full article...