Malaysian crude palm oil futures dropped as much as 5.7 per cent yesterday to hit a fresh 11-week low as weaker oil prices weighed on global vegetable oil markets.
The benchmark September contract on the Bursa Malaysia Derivatives Exchange fell as much as RM130 to RM2,155 per tonne, a level unseen since April 8.
The decline in the palm oil market was more pronounced compared to soyoil futures on the Chicago Board of Exchange and Dalian Commodity Exchange as there was a lack of fresh orders for the tropical oil, traders said.
“All the major markets, China, India and Pakistan are not issuing new orders. Only European Union countries are capitalising on the low prices for the biofuel sector,” said a trader with a local commodities brokerage.
Cargo surveyor Intertek Testing Services reported smaller declines of 3.4 per cent to 786,591 tonnes in June 1-20 shipments compared to 28.3 per cent slump in June 1-10 period.
Another surveyor, Societe Generale de Surveillance, estimated a fall of 4.1 per cent to 793,934 tonnes from 827,609 tonnes shipped between May 1 and 20.