(By wsj.com | Photo: Reuters)
Palm oil prices in Asia are coming under pressure from slowing demand in both the food and fuel sectors, dampening investor hopes for prolonged gains after prices surged to a six-month high earlier this month following extensive floods in Malaysia.
Consumption of palm oil, which is used in thousands of products from biscuits to lipstick to transportation fuel, has been dampened by forecasts of bumper harvests for competing oilseeds like soybeans and sunflower seeds. And a slump in crude-oil prices has sent palm-based biodiesel demand plummeting. Receding floodwaters aren’t helping prices either.