Palm oil fell and was on track for a weekly decline, as the recent jump in prices of the tropical oil prompts buyers to seek for alternative oils. Benchmark futures fell as much as 1.3% to 4,856 ringgit ($1,090) a ton in Kuala Lumpur. Prices of the most consumed cooking oil were poised to post a weekly fall of about 4.7%, after gaining more than 10% over the previous two weeks. The recent rally in prices had destroyed demand and prompted buyers to shift to other vegetable oils, said a trader. Palm oil’s wide spread against soft oils had pressured prices, said a trader. Improving weather conditions in Brazil were also dragging on the commodity, he said. A strong Brazilian soybean crop could add to supplies of soy oil, However, uncertainties over biodiesel mandates in Indonesia, demand over the Lunar New Year and Ramadan celebration periods early next year, and lower production through February may keep the markets volatile, he said.(Source:Bloomberg)
