Palm Oil At 15-Month Lows
Malaysian crude palm oil futures tumbled 5.4 percent on Monday to hit a 15-month low as crude oil fell further below key $100 a barrel milestone, dragging down other vegetable oils, traders said.
And signs of weakening export demand shown by cargo surveyors weighed on prices which are now more than half of record levels of 4,486 ringgit hit in early March.
The benchmark November contract on the Bursa Malaysia Derivatives Exchange fell as much as 128 ringgit to 2,252 ringgit ($651.8) per tonne, a level unseen since June 13, 2007.
"Crude oil has been a main crutch for palm oil and that appears to be giving way as well," said a trader with a local commodities brokerage. "Biodiesel hopes are now a flash in the pan."
And signs of weakening export demand shown by cargo surveyors weighed on prices which are now more than half of record levels of 4,486 ringgit hit in early March.
The benchmark November contract on the Bursa Malaysia Derivatives Exchange fell as much as 128 ringgit to 2,252 ringgit ($651.8) per tonne, a level unseen since June 13, 2007.
"Crude oil has been a main crutch for palm oil and that appears to be giving way as well," said a trader with a local commodities brokerage. "Biodiesel hopes are now a flash in the pan."