Palm oil dropped the most in more than a week after data showed that India slowed purchases as the world’s biggest consumer harvests a record oilseed crop.
The contract for delivery in December dropped 0.7 percent to 2,363 ringgit ($744) a metric ton on the Bursa Malaysia Derivatives. That’s the biggest drop at close for futures since Oct. 2. Palm for physical delivery in October was at 2,380 ringgit today, data compiled by Bloomberg show.
India’s imports fell 26 percent to 620,385 tons in September from a year earlier, according to the Solvent Extractors’ Association. India is on the cusp of the biggest domestic oilseed crop ever as production of soybeans and peanuts increases, according to Atul Chaturvedi, chief executive officer of Adani Wilmar Ltd.
“India’s harvest is on and we expect a larger crop in the coming days,” Prathamesh Mallya, an analyst at AnandRathi Commodities Ltd., said by phone from Mumbai. “Domestic availability of the soybean crop will ensure that demand for palm remains lower when compared to the same time last year.”
Palm oil futures advanced 3.3 percent last week, the biggest increase since the five days ended Aug. 16. Financial markets are closed in Malaysia tomorrow for a public holiday.
“Players are reluctant to take up new positions,” ahead of the holiday, said Donny Khor, deputy director of futures and commodities at RHB Investment Bank Bhd. in Kuala Lumpur. “Some Malaysian traders are taking this opportunity to go on leave.”
Soybeans for delivery in November gained 0.6 percent to $12.745 a bushel on the Chicago Board of Trade, while soybean oil for December climbed 0.6 percent to 40.53 cents a pound.
Refined palm oil for January delivery gained 1.1 percent to end at 5,680 yuan ($929) a ton on the Dalian Commodity Exchange and soybean oil closed little changed at 7,058 yuan a ton.