Malaysian palm oil futures rose for a third consecutive session on Wednesday, but the rally may lose steam due to concerns about rising stockpiles, traders said.
KUALA LUMPUR: Crude palm oil (CPO) for third month delivery fell below the crucial RM2,000 level on Wednesday – the lowest since September 2015 – as crude oil prices slumped.
At 3pm, CPO was down RM35 to RM1,972 per tonne.
US light crude oil fell 31 cents to US$55.38 per barrel and Brent was down 21 cents to US$65.35.
Bloomberg reported the fall in CPO follows a 7.1% slump in New York crude oil futures overnight,
It reported that a drop in petroleum prices makes palm oil less competitive in diesel fuel
Palm for January delivery, most active contract, fell as much as 2% to RM1,967.
Expanding inventories in Indonesia and Malaysia, world’s top producers, and slowing exports have weighed on market.
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