Palm oil fell for a second day in Malaysia on speculation that demand from importers, including Pakistan, may continue to slow in the near term.
The May-delivery contract dropped as much as 0.5 percent to 3,244 ringgit ($1,075) a metric ton on the Malaysia Derivatives Exchange, and traded at 3,247 at 4:03 p.m. in Kuala Lumpur.
The “negative news is on demand,” said Ivy Ng, an analyst at CIMB Investment Bank Bhd. Pakistan, the third-largest buyer, will cut purchases because of a transport issue, and a fall in Malaysian exports in February showed weak demand, she said.
Imports by Pakistan may drop 22 percent this quarter after a transporters’ strike closed factories, a refiners’ group said in remarks reported March 2. Shipments may fall to about 343,000 tons, the Pakistan Edible Oil Refiners Association said.
Palm oil may gain to 3,500 ringgit by mid-April as cooking- oil demand tops supply, according to TransGraph Consulting Pvt. Chairman Nagaraj Meda, who’s forecast prices for 13 years. There was positive momentum after damage to soybean crops, Meda said.
Soybeans for May dropped 0.6 percent to $13.255 a bushel on the Chicago Board of Trade, while soybean oil for the same month was little changed at 54.02 cents a pound. Soybeans rallied 10 percent last month as drought cut South American supplies.
Palm oil for delivery in September ended little changed at 8,358 ($1,326) yuan a ton on the Dalian Commodity Exchange. Soybean oil for delivery in the same month climbed 0.2 percent to close at 9,402 yuan a ton.
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