KUALA LUMPUR: Malaysian palm oil futures dipped on Wednesday as investors turned wary of record supplies of rival oilseeds that could overwhelm global demand and curb appetite for the tropical oil.
Palm prices rose 15 per cent in September, their biggest monthly gain since April 2009, lifted by robust export demand and anticipation for output to weaken.
But traders said while domestic fundamentals were supportive, the prospects of huge soybean crop in the United States and South America painted a bleak picture for soyoil prices, which are tracked by palm.
US soybean stocks ended the 2013/14 marketing year much smaller than expected at 92 million bushels, USDA data showed on Tuesday. But the market shrugged off the report showing lower supplies as harvesting of a record crop of almost 4 billion bushels gathered pace.
Published in Dawn, October 2nd , 2014
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