Palm oil declines
BANGKOK - Palm oil declined for a second day on concern that increasing supplies will weaken prices, and as Japan's nuclear crisis threatened its economy, pushing equity and commodity prices lower.
The most-active June-delivery contract fell as much as 1.9 percent to 3,305 ringgit ($1,078) a ton before trading at 3,325 ringgit at the midday break on Thursday. Futures plunged to 3,250 ringgit on Tuesday, the lowest price in more than three months.
"More production is coming on stream, putting pressure on the price," Arhnue Tan, senior investment analyst at ECM Libra Investment Bank Bhd, said from Kuala Lumpur, Malaysia.
World production of palm oil may increase 6.6 percent to 48.7 million tons in 2011, according to Oil World.
Bloomberg News
(China Daily 03/18/2011 page17)
