Palm oil futures dropped for a fourth day in Malaysia on concern demand for the world’s cheapest edible oil may diminish after prices rallied to a one-month high. May-delivery futures fell as much as 2.4 percent to 1,830 ringgit ($500) a metric ton on the Malaysia Derivatives Exchange, and paused at 1,849 ringgit at the midday break in trading. The contract climbed as high as 2,000 ringgit this week. Malaysia’s exports of the vegetable oil fell 13 percent in the first 15 days of this month to 494,172 tons compared with the same period in January, paced by a decline in Indian orders, the independent cargo surveyor Societe Generale de Surveillance said. Sales to India, the biggest consumer of palm oil after China, totaled 39,100 tons, compared with 90,359 tons in the same period in January, according to SGS. Crude oil prices have fallen below $35 a barrel and are headed for a fourth week of decline as the global recession cuts demand for energy. “Crude oil is a factor as it’s coming down quite a bit,” said James Ratnam, an analyst at TA Securities Holdings Bhd. in Kuala Lumpur. “Other short-term factors are concerns over exports. India has been importing less.” Palm oil tracks crude and soybean oils as it is a substitute in food and fuel applications. Still, palm oil may find support at 1,800 ringgit, said Thomas Bauer, the head of Asia Pacific food and agribusiness advisory and research for Rabobank Groep NV. “There will be good demand in these recessionary times,” he said. “We have found a bottom for palm oil.” Soybean oil has dropped 8 percent since January and is 34 percent more expensive than palm oil. The premium has narrowed from as much as 89 percent in October.

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