(For physical price assessments, see MPOI1.)
Sept. 24 (Bloomberg) -- Palm oil declined on speculation that stockpiles in top producers Indonesia and Malaysia may expand as production accelerates in the second half because of growing cycles, adding to world cooking-oil supplies.
Palm for December delivery fell 0.4 percent to close at 2,301 ringgit ($716) a metric ton on the Bursa Malaysia Derivatives. Futures lost 4.3 percent this month after advancing the most in almost three years in August. Palm for physical delivery in October was at 2,335 ringgit, data compiled by Bloomberg show.
Indonesian stockpiles of the most-used oil derived from crops will rise 66 percent to a record 3 million tons by the end of 2013-2014, adding to the biggest global supply of vegetable oils in history, the U.S. Department of Agriculture says. Global output of nine oils including soy, peanut and palm will expand 4.3 percent to 167.3 million tons, USDA data show.
“Futures were unable to hold on the higher side as the concern of rising production is still pressuring prices lower,” said Chandran Sinnasamy, head of trading at LT International Futures Sdn. “This is limiting gains.”
Dorab Mistry, a director at Godrej International Ltd. who has traded the oils for three decades, said futures may drop to 2,000 ringgit a ton by January, the lowest since 2009.
Soybeans for delivery in November rose 1.1 percent to $13.2175 a bushel on the Chicago Board of Trade. Soybean oil for December delivery was little changed at 42.29 cents a pound.
Refined palm oil for January delivery increased 0.9 percent to close at 5,410 yuan ($884) a ton on the Dalian Commodity Exchange. Soybean oil gained 0.7 percent to 7,084 yuan a ton.
--Editor: Ovais Subhani