TH: Palm Oil Falls from Six-Week High as Crude Prices Weaken
Palm oil dropped from a six-week high on Thursday after a decline in crude oil and soybeans reduced demand for its use in biofuels. April-delivery contract prices fell 1.1 percent to 2,600 ringgit ($765) a ton on the Malaysia Derivatives Exchange, the low for the day.
“The supply of vegetable oils, such as soybeans and palm oil, are expected to be ample, capping upside to prices,” brokerage AmResearch said in a report. The threat to production from dry weather caused by the El Nino weather phenomenon is also on the wane, it said.
Indonesia accepted bids for 9,000 tons of palm oil in auctions. Palm oil for Belawan and Dumai delivery traded at between Rp 7,575 and Rp 7,585 (about 82 cents) a kilogram on Thursday.
