JAKARTA: Malaysian crude palm oil futures fell as much as 8.5 per cent today as falling crude oil dimmed prospects for the vegetable oil for alternative energy and amid concerns about slowing demand due to a global economic meltdown.
The benchmark December contract on the Bursa Malaysia Derivatives Exchange stood at RM1,759 (US$500) per tonne at 0328 GMT after previously falling RM161, or 8.5 per cent, to RM1,729 (US$493) a tonne, a level unseen since November 15, 2006.
"Crude oil fell sharply which raised concern that biofuel may no longer be competitive," said a dealer in a local brokerage firm, adding the market expected crude oil could fall to US$80 a barrel soon.
Oil prices tumbled by more than US$4 a barrel today, extending losses to fresh one-year lows below US$83, as traders feared the credit crisis would send the global economy into recession and hurt fuel demand.
Crude for November delivery was down US$4.26 at US$82.33 a barrel by 0227 GMT, having earlier fallen to US$82.10 a barrel.
US grains fell sharply in early Asian trading today, led by a more than 4 per cent drop in soybeans, also adding to pressure on palm.
Chicago Board of Trade November soybeans fell 4.7 per cent to US$9.33-3/.4 per bushel by 0404 GMT.
Malaysian crude palm oil stocks rose 5.5 per cent in September to 1,949,498 tonnes from a revised 1,848,130 tonnes in August, official crop agency Malaysian Palm Oil Board said today.
A Reuters poll had forecast palm oil stocks to climb 9.3 per cent in September from a month earlier.
Cargo surveyors Societe Generale de Surveillance and Intertek Testing Services will report October 1-10 export data on the same day. - Reuters
The benchmark December contract on the Bursa Malaysia Derivatives Exchange stood at RM1,759 (US$500) per tonne at 0328 GMT after previously falling RM161, or 8.5 per cent, to RM1,729 (US$493) a tonne, a level unseen since November 15, 2006.
"Crude oil fell sharply which raised concern that biofuel may no longer be competitive," said a dealer in a local brokerage firm, adding the market expected crude oil could fall to US$80 a barrel soon.
Oil prices tumbled by more than US$4 a barrel today, extending losses to fresh one-year lows below US$83, as traders feared the credit crisis would send the global economy into recession and hurt fuel demand.
Crude for November delivery was down US$4.26 at US$82.33 a barrel by 0227 GMT, having earlier fallen to US$82.10 a barrel.
US grains fell sharply in early Asian trading today, led by a more than 4 per cent drop in soybeans, also adding to pressure on palm.
Chicago Board of Trade November soybeans fell 4.7 per cent to US$9.33-3/.4 per bushel by 0404 GMT.
Malaysian crude palm oil stocks rose 5.5 per cent in September to 1,949,498 tonnes from a revised 1,848,130 tonnes in August, official crop agency Malaysian Palm Oil Board said today.
A Reuters poll had forecast palm oil stocks to climb 9.3 per cent in September from a month earlier.
Cargo surveyors Societe Generale de Surveillance and Intertek Testing Services will report October 1-10 export data on the same day. - Reuters
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