Malaysia CPO down 4% on rising inventories, weak US soybean values

24 September 2012 11:19  [Source: ICIS news]

SINGAPORE (ICIS)--Malaysia’s crude palm oil (CPO) futures fell by 4% on Monday following increased inventories and weaker US soybean prices, traders said.

The December contract on the Bursa Malaysia Derivatives Exchange settled at ringgit (M$) 2,651/tonne ($869/tonne), down from M$2,763/tonne on 21 September.

The falling palm futures have dampened the sentiment of buyers in the downstream oleochemical sector.

Several fatty acid and fatty alcohol buyers said they prefer to minimise or delay their new purchases.

“We are going to book some cargoes but we will reduce our purchases. We expect prices to fall further," said a fatty alcohol buyer in China.

($1 = M$3.05)

By: Yeow Pei Lin

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