Palm oil:

At last after a long time, Malaysian crude palm oil price drop as much as 4.1% on Tuesday 12 August to hit a new 10-month low as wavering crude oil prices and expectations of higher worldwide stocks pressured vegetable oil costs. Oil prices have slid just about 13% this year and drop more than 40% from their March peak. On the other hand, traders have expected that there is a possibility to fall more even further and it may reach the 2,500-ringgit levels soon.

The average analysts’ estimates pegged the US soy crop at about 3.001 billion bushels, mostly unchanged from USDA’s July calculate of 3.0 billion. On the other hand US soy oil for September delivery cut down nearly 1% in Asian regions since traders awaited the USDA’s estimated report. In the month of January soy oil contract on Dalian Exchange, China fell 0.8%. The same thing is happened in Indonesia, there crude palm oil prices dropped up to 5.5% on this Tuesday, tracking vacillating Malaysian market. However trading was thin with players ran away on the sidelines and waiting prices to become stable.

A trader with a foreign brokerage informed, “Crude oil sharp fall was the trigger point and it was compounded by news of defaults from India and China,” he also added “Now, even Pakistan appears to be delaying some part of its Ramadan purchases.” But another trader opinion was,” Exports may be recovering but we are not going to see the fantastic increases. There is too much palm oil around”