Palm Oil Drops as Stockpiles Set to Surge on Weak Global Demand
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Palm oil fell on concern that inventories in Malaysia, the second-largest producer, will expand as a global economic slowdown weakens demand for the vegetable oil used in food and biofuels.
The contract for January delivery, which has the largest volume and open interest, closed 0.2 percent lower at 2,466 ringgit ($808) a metric ton on the Malaysia Derivatives Exchange. The most-active contract has declined 23 percent this year, touching a three-year low of 2,230 ringgit on Oct. 3.