(For physical price assessments, see MPOI1.)
Aug. 29 (Bloomberg) -- Palm fell the most in five weeks on concern that a rally to a five month-high may erode demand for the most-used edible oil just as India grapples with a record low currency that will raise import costs for the biggest buyer.
Palm for November delivery declined 1.7 percent to 2,438 ringgit ($738) a metric ton on the Bursa Malaysia Derivatives, the biggest drop at close for the most-active contract since July 25. Palm for physical delivery in September was at 2,495 ringgit, data compiled by Bloomberg show.
Futures, which rallied for six days to yesterday in the best run since December 2010, closed at the highest level since March 22 as crude oil surged. India’s rupee plummeted the most in two decades yesterday to a record as the surge in crude oil threatened to worsen a current-account deficit and push the economy toward its biggest crisis since 1991.
“There are worries that demand could slow as prices have been moving up a lot,” Donny Khor, deputy director of futures and commodities at RHB Investment Bank Bhd., said from Kuala Lumpur. “Another point of concern is the fall in the Indian rupee as a weaker currency would mean they have to pay more.”
Palm is still heading for the first monthly advance in Kuala Lumpur since May. Exports from Malaysia, the largest producer after Indonesia, rose 7.1 percent to 1.16 million tons in first 25 days of August from the same period in July, Intertek estimates.
Soybeans for November delivery lost 0.3 percent to $13.685 a bushel on the Chicago Board of Trade. Soybean oil for delivery in December declined 0.6 percent to 44.52 cents a pound.
Refined palm oil for January delivery fell 2.3 percent to close at 5,594 yuan ($914) a ton on the Dalian Commodity Exchange. Soybean oil declined 1.5 percent to 7,224 yuan a ton.
--With assistance from Ranjeetha Pakiam in Kuala Lumpur. Editor: Thomas Kutty Abraham