31/12/2012 (Bloomberg) - Palm oil dropped, extending an annual loss and snapping a five-day rising streak, as declining exports from Malaysia signaled weaker demand.

The contract for March delivery lost as much as 1.1 percent to 2,470 ringgit ($807) a metric ton on the Malaysia Derivatives Exchange, and ended the morning session at 2,471 ringgit in Kuala Lumpur. Futures have lost 22 percent this year as stockpiles in Malaysia climbed to an all-time high.

Shipments fell 5.7 percent to 1.57 million tons in December from 1.66 million tons a month earlier, surveyor Intertek said today. Exports are generally lower during the winter months as the tropical oil clouds in cooler temperatures. Malaysia is the largest producer after Indonesia.

“This signals weak demand” from the Northern Hemisphere, Alan Lim Seong Chun, an analyst at Kenanga Investment Bank Bhd., said by phone in Kuala Lumpur, referring to the export figure.

Soybeans for March delivery dropped 0.4 percent to $14.1275 a bushel on the Chicago Board of Trade. Soybean oil for delivery in March was little changed at 49.37 cents a pound.