11/03/2008 (Commodity Online, India), Mumbai - Palm oil prices in Malaysia, the global benchmark, declined for a fifth day following losses in vegetable oils in Chicago and China, and as weakness in equity markets triggered selling of commodities.

Palm oil for May delivery fell as much as 210 ringgit, or 5.7 percent, to 3,500 ringgit ($1,094) a metric ton. The most- active contract, which reached a record 4,486 ringgit a ton on March 4, closed at 3,665 ringgit on the Malaysia DerivativesExchange in
Kuala Lumpur. `

The decline is related to the equity markets and the broader correction in some related commodities,'' Ong Chee Ting, an analyst at Aseambankers Malaysia Bhd in Kuala Lumpur, said today.

China, the world's biggest importer of soybeans, will boost planting of the oilseed this year in response to record prices, Vice Minister of Agriculture Wei Chaoan said today. The country increases imports of soybeans by about 2 million metric tons a
year because of rising consumption of vegetable oils for cooking and of oilseed meal for animal feed, he told a press conference in Beijing.

Soybean and soybean oil futures fell by the daily maximum allowed by the Chicago Board of Trade on speculation the Chinese government will release vegetable oil from state reserves to curb inflation.

China's regional governments should use more of their vegetable oil reserves to control rising prices, the National Development and Reform Commission said today.

Authorities must also step up monitoring of vegetable oil markets and crack down on hoarding and price manipulation, the state planning agency said. China is the world's top soybean and vegetable oil buyer.