July 29 (Bloomberg) -- Palm oil futures in Malaysia dropped below 3,000 ringgit ($921) a metric ton for the first time in seven months.
Palm oil for October delivery fell as much as 1.4 percent to 2,958 ringgit on the Malaysia Derivatives Exchange, the lowest since Dec. 21. The contract was at 2,981 ringgit at 12:02 p.m. local time.
``It could drop to 2,800 ringgit soon,'' Ben Santoso, an analyst at DBSVickers Securities (Singapore), said by phone today. ``It depends on oil.''
Vegetable oils tend to track crude oil prices as they can used for making biofuels.
New York crude oil futures have declined 11 percent this month. Oil for September delivery last traded at $125.08 a barrel, up 0.3 percent from yesterday.
Soybean oil traded in Chicago has dropped 12 percent the past month and was at to 59.82 cents a pound in electronic trading at 12:02 a.m. in Singapore. Palm oil is a substitute for soybean oil.
What about rubber?
These two charts are the closest I can get to have a feel of rubber prices trend since January 2007. Sorry you got to imagine by joining the two charts together. The rubber prices beginning to head South. So, ......
Is it a good idea to jump into glove makers? Have the falling knives hit the ground? Not sure as they have another headwind -- natural gas hike -- against them. They said they can pass on the cost increase to their customers -- true? Sit back and relax, wait for my Part II.
(click all for bigger images)