Palm oil dives 5.5pc

Published October 24, 2008

KUALA LUMPUR, Oct 23: Malaysian crude palm oil futures tumbled 5.5 per cent on Thursday, dragged down by faltering US and Chinese soyoil markets as well as fears of slower exports, traders said.

The benchmark January contract on the Bursa Malaysia Derivatives Exchange fell as much as 86 ringgit to 1,479 ringgit ($417.3) per ton in the first few minutes of trade.

Most soyaoil futures on Dalian Commodity Exchange hit limit down while US soyabean oil for December delivery fell 0.6per cent.

Malaysian palm oil exports have been slowing significantly in part due to defaults from top buyers China and India and a general weakness in global demand fuelled by a looming recession.

Exports of Malaysian palm oil products for Oct. 1-20 fell up to 10.2 per cent to around 720,000 tons, cargo surveyors have reported.—Reuters

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