Palm Oil Declines for a Fifth Day as Stockpiles Jump in Malaysia
Palm oil fell for a fifth day, set for the longest losing run since November, as stockpiles in Malaysia, the second-largest producer, climbed to a 10-month high, boosting global vegetable-oil supplies.
The November-delivery contract fell as much as 1 percent to 2,897 ringgit ($933) a metric ton and ended the morning session at 2,918 ringgit in Kuala Lumpur. Futures lost 3.1 percent last week and have declined 8.1 percent this year.
Stockpiles rose 5.8 percent to 2.12 million tons in August from a month ago, the highest level since October, the Malaysian Palm Oil Board said today. Output declined 1.7 percent to 1.66 million tons, while exports rose 10 percent to 1.43 million tons, it said. Exports may drop this year due to reduced output, Lee Yeow Chor, chairman of Malaysian Palm Oil Council said.
“Higher availability of palm oil in Malaysia on improved stockpiles is” weighing on prices, Karvy Comtrade Ltd., a Hyderabad-India based brokerage said in a report today. “Losses in palm oil futures prices seem to be limited on improved Malaysian exports.”
Exports rose 26.8 percent to 453,302 tons in the first 10 days of September from a month ago, independent market surveyor Intertek said today.
Soybean futures dropped for a fourth day, the longest losing streak since January, as U.S. export sales declined .The November-delivery contract fell 0.2 percent to $17.33 a bushel on the Chicago Board of Trade. Soybean oil for December delivery rose 0.3 percent to 56.83 cents a pound. Soybean oil and palm oil are used in foods and fuels.
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