13 March 2013

Palm Oil Drops to One-Week Low as Brazil’s Soy Harvest Picks Up


Palm declined for a second day, falling to the lowest level in more than a week, on concern that the advancing soybean harvest in Brazil will boost global oilseed supplies, depressing demand for the tropical oil.

The contract for May delivery lost as much as 1.5 percent to 2,375 ringgit ($765) a metric ton on the Malaysia Derivatives Exchange, the lowest most-active price since March 4, and traded at 2,390 ringgit before the midday break. Futures have lost 29 percent in the past year as supplies outpaced demand.

About 48 percent of Brazil’s soybean crop was harvested as of March 8, compared with 46 percent a year earlier, according to researcher Safras & Mercado. The country is set to overtake the U.S. this year as the top exporter of the beans that can be crushed to make soybean oil.

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