March 14 (Bloomberg) -- Palm oil declined to the lowest level
since January on concern that a bumper soybean crop in Brazil, poised to be the
world’s largest grower this year, will boost global oilseed supplies and damp
demand.
The contract for May delivery dropped as much as 1.5 percent
to 2,362 ringgit ($759) a metric ton on the Malaysia Derivatives Exchange, the
lowest most-active price since Jan. 14.
Futures were 2,363 ringgit at close of the morning session
in Kuala Lumpur, down 30 percent in the past year.
About 11.9 million tons of soybeans and its products were scheduled
for shipment at major ports in Brazil as of yesterday, up from 10.77 million tons
a week ago, according to SA Commodities and Unimar Agenciamentos Maritimos.
The country is set to overtake the U.S. this year as the top
exporter of the beans that can be crushed to make soybean oil. “Buyers know
that the supply is coming, so they may be only willing to offer lower prices,”
said Alan Lim Seong Chun, an analyst at Kenanga Investment Bank Bhd., referring
to oilseeds from Brazil.
Soybean oil for May delivery fell 0.2 percent to 49.41 cents
a pound on the Chicago Board of Trade, while soybeans for May delivery
retreated 0.5 percent to $14.40 a bushel. Soybean oil was about 1.44 times
costlier than palm.
Refined palm oil for delivery in September dropped 0.7 percent
to 6,296 yuan ($1,012) a ton on the Dalian Commodity Exchange. Soybean oil for
delivery in the same month was little changed at 8,032 yuan a ton.
