Financial Times FT.com

Palm oil plummets on supply glut

By John Aglionby in Jakarta, John Burton in Singapore and Andrew Wood in Hong Kong

Published: September 11 2008 17:14 | Last updated: September 11 2008 17:14

Palm oil prices have nearly halved after hitting a peak in March, when surging crude oil prices boosted interest in the biofuels derived from palm oil.

Analysts blame the rapid plunge on a supply glut and a prolonged period of unusually good weather, in addition to the strengthening dollar, crude’s drop to $100 a barrel and speculators fleeing from commodity markets.

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