Reuters
Kuala Lumpur
Malaysian palm oil futures fell on Thursday, after reaching a new 18-month high, on concerns of slowing demand after data showed exports declined.
The benchmark palm oil contract for March on the Bursa Malaysia Derivatives Exchange fell 0.6 percent to 2,480 ringgit ($578.09) a tonne at the end of the trading day.
The contract reached 2,508 ringgit earlier in the session, the highest since June 25, 2014. Malaysian palm futures gained 9.5 percent for the year due to concerns that dry weather caused by the El Nino weather phenomenon will reduce palm fruit harvests.
Palm also rose as Indonesia´s biodiesel mandate is seen creating additional demand for the tropical oil.
It will raise the minimum bio content in diesel fuel to 20 percent in 2016 from the current 15 percent.
Exports from Malaysia, the world´s second largest palm oil producer after Indonesia, have been falling as demand from top consumers China and India slows down.