KUALA LUMPUR: Malaysian palm oil futures fell for a third session on Monday, dropping to their lowest in nearly five weeks as poor demand from major buyers sparked concern that palm’s use in food and fuel industries may continue to slump in coming months.

Palm prices ran up 14 per cent from December to a six-month high of 2,394 ringgit by Jan. 15 after monsoon flooding wreaked havoc in parts of Malaysia, the second-biggest grower, inundating estates and destroying infrastructure.

The benchmark April contract had dropped 2.5pc to 2,175 ringgit ($601) per tonne by Monday’s close, after touching 2,170 ringgit in late trade, the lowest since Dec. 23.

Malaysian exports of palm oil products fell 17.7pc to 886,189 tonnes between Jan 1-25 from the same period a month before, according to cargo surveyor Intertek Testing Services. Another cargo surveyor, Societe Generale de Surveillance, reported that exports for the same period slid 19pc.

The Malaysian Palm Oil Association, a growers’ group, estimates crude palm oil production fell 24.3pc between Jan 1 and 20.

Published in Dawn January 27th, 2015

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