Palm oil extends drop toward November low as demand outlook dims

The likelihood that plantations in Sabah will continue operations will ease concern over output losses in February and weigh on palm prices.

KUALA LUMPUR: Palm oil is heading for its lowest close in almost three months as traders assess mounting concern about the strength of demand against a voluntary lockdown in Malaysia’s top producing state.

Futures declined for a third day. Crude palm oil for third months fell to a low of RM3,196 per tonne Tuesday. Data this week showed Malaysian exports sank about 35% in January, signaling weaker demand.