Palm oil falls below RM2,000

Production in Malaysia may reach a record 19.7 million to 19.9 million tonnes.

Kuala Lumpur: Palm oil tumbled below RM2,000 a tonne for the first time in more than five years as forecasts for a record US harvest of soybeans used to produce an alternative oil threaten to curb demand.

Futures dropped as much as 2.5% to RM1,989 on the Bursa Malaysia Derivatives, the lowest level since March 2009, and closed at RM2,000. Prices are down 25% this year, heading for the third annual decline in four years.