Palm Oil Gets Biggest Drop in Week After China Cancels Purchases

Bloomberg reported that the price of palm oil has plummeted this week largely due to China’s cancellation of soybean purchases. China is the world’s biggest buyer of vegetable oils.

As quoted in the market news:

“The contract for March delivery slid as much as 1.2 percent to 2,313 ringgit ($758) a metric ton on the Malaysia Derivatives Exchange, the biggest intraday fall since Dec. 12. The price was at 2,318 ringgit at 12:01 p.m. in Kuala Lumpur.

U.S. exporters said 420,000 tons of soybeans registered for delivery before Sept. 1 were canceled, including 300,000 tons bound for China, according to the U.S. Department of Agriculture. Palm oil, which competes with soy, is heading for a 27 percent drop this year, the worst annual loss since the financial crisis in 2008, as stockpiles in Malaysia have climbed to a record.”

Click here to read the full Bloomberg report.