Markets

Palm oil declines

(China Daily)
Updated: 2010-06-30 11:25

SINGAPORE - Palm oil posted the biggest drop in eight days as crude oil slumped and soybeans declined, reducing demand for the tropical commodity used in food and biofuels.

The September delivery contract fell 1.5 percent to 2,363 ringgit ($737) a ton on the Malaysia Derivatives Exchange.

Related readings:  Soybean, wheat futures advance as dollar weakens  Crude prices trade higher after China's currency move  Third oil firm wins full crude import right

Palm oil has fallen about 7.3 percent this quarter on forecasts for record output of world oilseed crops and was at 2,367 ringgit at 4:05 pm. "The mid-term technical outlook is still pointing down," said Ryan Long, a futures trader at OSK Investment Bank Sdn. "The immediate downside target is 2,350" ringgit a ton, he added.

The technical charts for palm oil signal prices falling to between 1,990 and 2,200 ringgit a ton, an RHB Research Institute Sdn report said on Monday.

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