Kuala Lumpur - Arabstoday
Palm oil fell, following the steepest gain in two weeks Tuesday, on concern that the US economy is slowing even as lawmakers agreed to raise its debt ceiling. The October-delivery contract dropped 0.2 per cent to 3,114 ringgit (Dh3,875) a tonne on the Malaysia Derivatives Exchange. Futures gained 0.8 per cent yesterday, the most since July 20. The debt issue isn\'t \"over yet because this is kind of a temporary measure,\" Donny Khor, senior vice-president for futures & options at OSK Investment Bank Bhd., said by phone from Kuala Lumpur. \"Whether it will be cured, I don\'t think so, it will continue.\" Palm oil\'s trading is expected to be \"range-bound\" between 3,080 ringgit and 3,180 ringgit in the near term. A report late last night is forecast to show that personal spending stagnated in June, after data yesterday showed a gauge of manufacturing weakened to a two-year low. Article continues below Concern is shifting to the slowing US recovery after the House of Representatives approved legislation to raise the federal debt limit, a day before a possible default. The Senate was to vote on the proposal yesterday. Malaysia\'s palm oil exports climbed 13 per cent to 1.63 million tonnes in July from 1.44 million tonnes in June, independent market surveyor Intertek said July 30. Shipments rose 13.5 per cent in July to 1.63 million tonnes compared with the previous month, Societe Generale de Surveillance estimated. \"This is just reconsolidating,\" Chandran Sinnasamy, head of trading at LT International Futures said from Kuala Lumpur. Soybean oil for December delivery advanced as much as 0.6 per cent to 57.24 cents per pound in Chicago. Soybeans for delivery in November gained as much as 0.6 per cent to $13.705 per bushel before trading little changed at $13.6175.