Palm fruit (Source: thestar.com.my) Hanoi (VNA) - Palm oil retreated from an eight-year high on concerns that shipments from second-biggest grower Malaysia may dwindle next month amid weaker demand from China, reported the Bloomberg.
The tropical oil reversed morning gains to fall by 1.5 percent, snapping a three-day rally that powered futures on December 24 to their highest level since April 2012. It is still up 16 percent so far this year.
Although Malaysian exports in December could climb to 1.6 million tonnes, the stronger shipments, as well as a likely reduction in production and stockpiles, are mostly priced in, said Anilkumar Bagani, research head at the Mumbai-based Sunvin Group.
Indonesia’s move to raise its export tax on crude palm oil for January may underpin the market, Bagani added.
Malaysia’s palm oil exports jumped 17 percent from a month earlier to 1.34 million tonnes during December 1-25, according to cargo surveyor AmSpec Agri./.
VNA
