KUALA LUMPUR, Jan 22: Malaysian crude palm oil futures dived more than 5 per cent to a three-week low on Tuesday as growing fears of a US economic recession walloped world stock markets, knocking global commodity prices lower as well.
The benchmark April contract on the Bursa Malaysia Derivatives Exchange fell as much as 175 ringgit to 3,068 ringgit ($932) a ton, a level not seen since Dec 31. The contract settled down 128 ringgit at 3,115 ringgit.
Palm is not spared from this carnage because the funds have immediately turned their backs on most commodity markets and moved out, said a senior trader.
Palm oil, used in products ranging from shower gels and chocolates to biodiesel, has fallen nearly 9 per cent from the all-time record high of 3,420 ringgit last week. It is now up only 2 per cent from the start of the year.
Other traded months fell between 131 and 169 ringgit.
Overall trade more than doubled at 22,680 lots of 25 tons each.
The Malaysian market will be closed on Wednesday for a religious holiday.—Reuters
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