Palm oil falls to lowest in more than two years

The government will draw up new strategies and approaches to combat the anti-palm oil campaign by the European Union (EU) which give negative perceptions of the palm oil industry in this country.

KUALA LUMPUR: Crude palm oil for September delivery fell as much as 1.3% to RM2,176 per tonne on Bursa Malaysia Derivatives on Thursday, the lowest intraday level for most-active contract in more than two years.

The CPO futures were down RM2 to RM2,202 by midday break or down 12% year-to-date.

Demand is subdued, while production is going to rise at a higher pace, says Rajesh Modi, trader at Sprint Exim in Singapore.

Weaker crude oil prices also pressuring palm amid trade war between the US and China: Modi

* Biggest palm oil buyer seen reducing imports for a second month.

*  Indonesia’s palm oil reserves unexpectedly jump on higher production.

* Soybean oil for December delivery on Chicago Board of Trade +0.1% to 28.84c/lb; Nov. soybeans +0.6% to $8.53 1/4/bushel.

* Soybean oil’s premium over palm oil at US$91 a ton versus average US$97 over past year, according to data compiled by Bloomberg

* Palm oil’s discount to gasoil at US$106/ton vs average premium of US$46 over past year, according to data compiled by Bloomberg.

* Refined palm oil for September delivery on Dalian Commodity Exchange -0.7% to 4,622 yuan/ton; Sept. soybean oil -0.1% to 5,496 yuan/ton. - Bloomberg