Malaysian palm oil down as export orders shift to Indonesia. Palm oil bucked the trend in commodity markets that rose after the U.S. Federal Reserve said it would keep interest rates near zero until at least late 2014, providing ample liquidity to spur growth. Palm oil investors instead focused on cargo surveyors reports of a decline of close to 17 percent to 19.9 percent in Malaysian exports from Jan. 1 to 25, with some saying orders had shifted to Indonesia, which offers cheaper cargoes thanks to lower export taxes. Cargo surveyor Societe Generale said Malaysian palm oil exports for Jan. 1-25 dropped 19.9 percent to 947,401 tonnes from 1,182,707 tonnes shipped during Dec. 1-25 as countries like China and India cut back on orders. Brent crude rose above $110 , extending gains on hopes of demand growth revival after the U.S. Federal Reserve said it would keep interest rates low for much longer than previously planned to help speed economic recovery. Higher crude oil supported prices of other vegetable oils that are increasingly getting channeled into the biodiesel sector. The U.S. soyoil contract for March delivery rose 0.4 percent in Asian trade after posting gains in the previous session. China’s commodity markets are closed for Lunar New Year this week.
Source: Reuters
