(For physical price assessments, see MPOI1.)
Oct. 11 (Bloomberg) -- Palm oil retreated for the first time in six days on speculation that imports from India, the world’s biggest buyer, will decline before the country’s record oilseed harvest.
The contract for delivery in December slid 0.5 percent to 2,380 ringgit ($749) a metric ton on the Bursa Malaysia Derivatives, the biggest drop since Oct. 2. Futures advanced 3.3 percent this week, the biggest such increase since the five days ended Aug. 16. Palm for physical delivery in October was at 2,385 ringgit today, data compiled by Bloomberg show.
India’s imports probably fell 22 percent to 650,000 tons in September from a year earlier, according to a Bloomberg survey. The Solvent Extractors’ Association of India will release data next week. India is on the cusp of the biggest oilseed crop ever as production of soybeans and peanuts increases, according to Atul Chaturvedi, chief executive officer of Adani Wilmar Ltd.
Prices declined “as demand from India slowed before the new oilseed crop harvest,” said Gnanasekar Thiagarajan, a director at Commtrendz Risk Management Services in Mumbai.
Inventories in Malaysia, the world’s second-biggest producer, increased 7 percent to 1.78 million tons last month from August and output gained 10 percent to 1.91 million tons, Malaysian Palm Oil Board data showed yesterday.
Soybeans for delivery in November dropped 0.4 percent to $12.83 a bushel on the Chicago Board of Trade, while soybean oil for December slid 1.1 percent to 40.78 cents a pound.
Refined palm oil for January delivery gained 0.2 percent to close at 5,620 yuan ($919) a ton on the Dalian Commodity Exchange and soybean oil declined 0.5 percent to end at 7,064 yuan.
--Editor: Thomas Kutty Abraham