(Bloomberg) -- Palm oil fluctuated on its poor production outlook and concerns about the tropical oil’s biofuel appeal following recent declines in petroleum prices.
Crude oil dropped 3.7% in the previous session, before partially recovering on Wednesday. The commodity, which has slipped in nine out of 12 sessions, traded below $70 a barrel for the first time in more than two years on concerns about global demand.
Palm oil is reacting to moves in crude oil, said David Ng, a senior trader at IcebergX Sdn. Still, concerns about the pace of production in Malaysia are likely to support the market, he said.
Output in the world’s second-biggest grower rose less than 3% in August from a month earlier, the Malaysian Palm Oil Board’s data showed Tuesday. That compared with a surge of 14% in July.
©2024 Bloomberg L.P.
