NewsFlashAsia CPO falls 10% on weak soyoil

01 April 2008 07:55  [Source: ICIS news]

SINGAPORE (ICIS news)--Crude palm oil (CPO) futures in Malaysia plunged by the daily limit of 10% at the end of Tuesday morning trade in line with corresponding drops in soyoil values, traders said.

Benchmark June delivery futures were trading at ringgit (M$) 3,078/tonne ($962/tonne) at 6:25 GMT on Bursa Malaysia, down M$317/tonne from Monday’s close.

CPO prices fell on the back of corresponding drops in soyoil values as the US Department of Agriculture reported higher soybean seeding by growers this year, traders said.

Actions taken by the Indian government in order to curb food inflation also exacerbated the bearish sentiment in the CPO market as imports duties for crude edible oils were scrapped effective today, they added.

The resulting drop in Indian domestic soybean oil prices would cap the appeal of palm oil as a substitute in food applications.

The Indian government had earlier cut the import duty for CPO to 20% from 45% in late March.

($1 = M$3.20)

ICIS Copyright © Reed Business Information 2009

Author: Jeremiah Chan
+65 6780 4359

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.