Palm Oil Declines as Rally to Six-Week High May Hurt Demand
Jumat, 31 Agustus 2012 | 10:03
Palm oil dropped on concern that a rally to the highest level in six weeks may crimp demand, and as speculation intensified that there may not be further stimulus from the U.S., hurting commodities.The November-delivery contract fell as much as 0.8% to 3,067 ringgit (US$982) a metric ton on the Malaysia Derivatives Exchange, and was at 3,074 ringgit at 11:41 a.m. in Kuala Lumpur. Futures gained to 3,091 ringgit yesterday, the highest settlement for the most-active contract since July 16, as the worst U.S. drought in a generation drove soybeans to a reco
Federal Reserve Chairman Ben S. Bernanke probably won’t use an Aug. 31 speech at the Fed’s annual symposium in Jackson Hole, Wyoming, to suggest a third round of bond buying is imminent, according to JPMorgan Chase & Co. and High Frequency Economics. Members of the Federal Open Market Committee have been divided about whether to spur expansion.
“On the macro-economic front, it’s about the stimulus package,” Ker Chung Yang, an analyst at Phillip Futures Pte, said by phone from Singapore. Investors had “probably priced in the worst-case scenario” for the U.S. soybean crop, he said.
November-delivery soybeans rose as much as 0.7% to US$17.31 a bushel on the Chicago Board of Trade before trading at US$17.235. Soybeans surged to a record US$17.605 yesterday. Soybean oil for December delivery was little changed at 56.63 cents a pound. Palm oil and soybean oil are used in foods and fuels.
Palm oil for January delivery lost 1% to 8,202 yuan (US$1,290) a ton on the Dalian Commodity Exchange. Soybean oil for delivery in the same month retreated 1.2% to 10,010 yuan a ton. (Bloomberg/aph)