12/09/2012 (Bloomberg) - Palm oil declined to the lowest level in more than three weeks on concern that declining exports from Malaysia, the world’s second-biggest producer, may boost stockpiles amid a seasonal pick-up in output.

The November-delivery contract dropped as much as 2 percent to 2,878 ringgit ($928) a metric ton on the Malaysia Derivatives Exchange, the lowest level since Aug. 16, and ended the morning session at 2,883 ringgit in Kuala Lumpur.

Stockpiles climbed to 2.12 million tons in August, the highest level since October, the Malaysian Palm Oil Board said yesterday. Exports fell 15 percent to 1.43 million tons last month from a year earlier, board’s data showed.

“We believe exports for the rest of the year will continue to lag behind 2011,” Arhnue Tan, an analyst at Alliance Research Sdn., said in a report today. “This is owing to weakness in global demand, especially China.”

China’s palm-oil imports may fall 5 percent to 5.6 million tons in 2012 from 5.91 million tons last year, researcher Grain.gov.cn said today.

Soybean futures for November delivery slid 0.2 percent to $17.16 a bushel on the Chicago Board of Trade. Soybean oil for December delivery was little changed at 56.62 cents a pound. Soybean oil and palm oil are used in foods and fuels.

Palm oil for January delivery fell 0.6 percent to 7,966 yuan ($1,256) a ton on the Dalian Commodity Exchange. Soybean oil for delivery in the same month declined 0.2 percent to 10,040 yuan a ton.