Palm oil declined for a fourth day to the lowest level in more than a week on speculation that stockpiles in Malaysia, the largest producer after Indonesia, will climb from a record as exports drop. The contract for February delivery lost as much as 1.3 percent to 2,380 ringgit ($778) a metric ton on the Malaysia Derivatives Exchange, the cheapest for the most-active contract since Nov. 14, and ended the morning at 2,387 ringgit in Kuala Lumpur. Futures are set for a 0.4 percent decline this week, extending a 25 percent drop this year. Inventories gained for a fourth month to reach an all-time high of 2.51 million tons in October, according to data from the Malaysian Palm Oil Board. Shipments dropped 3.8 percent to 1.01 million tons in the first 20 days of November from a month earlier, Societe Generale de Surveillance said on Nov. 20. “There are some concerns that the stocks may climb again because of the poor export data,� said Ivy Ng, an analyst at CIMB Group Holdings Bhd. “Production is supposed to come off but exports have also come off, so the issue is whether the production fall is bigger than the export fall.� Palm oil for May delivery lost 1.3 percent to 6,682 yuan ($1,073) a ton on the Dalian Commodity Exchange. Soybean oil for the same month fell 0.4 percent to 8,500 yuan a ton. To contact the reporter on this story: Ranjeetha Pakiam in Kuala Lumpur at rpakiam@bloomberg.net To contact the editor responsible for this story: James Poole at jpoole4@bloomberg.net

Source