Palm Oil Nears Bear Market as Chinese Demand Outlook Worsens
- Futures slump below 1,900 ringgit for first time since 2009
- Prices hurt by rout in commodities, weak biodiesel demand
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Palm oil slumped for a fifth day to trade near a bear market as rising supplies threatened to swell stockpiles amid concerns that China’s economic slowdown will curb demand for raw materials.
The benchmark futures contract on Bursa Malaysia Derivatives in Kuala Lumpur retreated 0.5 percent to 1,906 ringgit ($452) a metric ton on Tuesday, the lowest level at close since March 2009. A close below 1,903 will be more than 20 percent drop from this year’s closing high of 2,378 ringgit reached on March 3, meeting the common definition of a bear market. Prices plunged to as low as 1,863 ringgit in intraday trading.