Palm oil fell to its lowest level in more than a week on concerns about poor demand and rising production, with losses in soybean oil putting further pressure on the tropical oil.
Futures in Kuala Lumpur fell as much as 1.4% to 3,669 ringgit a ton, the lowest intraday level since Sept. 12, before recouping some losses by the midday break. Soyoil, palm’s closest food and fuel substitute, slumped for a fourth day in Chicago to the lowest since August.
Palm succumbed to selling pressure in US soyoil and Dalian vegetable oil markets, while demand remains a major concern, according to Paramalingam Supramaniam, a director at Pelindung Bestari, a Selangor-based broker.
Prices are further weighed by rising production in the second-biggest grower Malaysia, especially in its top-producing states of Sabah and Sarawak, he said.
