Weather clouds palm oil futures
KUALA LUMPUR, Malaysia - Palm oil dropped for a third day on speculation that weather conditions that pushed prices to the highest level in almost three years may be improving, helping increase supplies of the commodity.
The May-delivery contract declined as much as 2.1 percent to 3,665 ringgit ($1,204) a ton on the Malaysia Derivatives Exchange, and was at 3,692 ringgit a ton at 4:14 pm on Thursday.
"Palm oil may have already peaked," Tan Ting Min and Teddy Oetomo, analysts at Credit Suisse Group AG, said in a report on Thursday. "Prices could still spike to 4,000 ringgit with weather vagaries, but we believe this is unsustainable for a longer duration as it leads to a slowdown in demand."
Bloomberg News
(China Daily 02/18/2011 page17)
