KUALA LUMPUR – Malaysian palm oil futures recorded its biggest daily decline since July 2013 on Monday as crude oil hit five-year lows and export data showed weakening global demand for palm oil.

 “Everything dropped today on the back of weak crude oil, poor export figures, the weak of bean oil and also the weak Dalian-basically everything is weak” said a trader to Business Recorder, on Tuesday (02/12/2014).

Weak crude oil dents palm oil demand by making it less appealing for blending into biofuels. The benchmark February contract on the Bursa Malaysia Derivatives Exchange fell as much as 4.1% to 2,083 ringgit in early trade, their lowest since September 22. Prices then closed at 2,109 ringgit (US$ 615) per ton, down 2.9% , recording the contract’s steepest daily fall since July 12, 2013.

While for the total of traded volume stood at 59,556 lots of 25 tons, much higher than the average as 35,000 lots. (T4)