KUALA LUMPUR, April 8: Malaysian palm oil flew deep into negative territory on Tuesday as players disagreed over the potential for the market’s exports under Iraq’s food-for-oil programme, which bolstered prices just a day ago.

Talk on Monday that palm oil may benefit immensely from a race to get edible oil supplies into Iraq saw palm oil’s key June contract surging 28 ringgit and other futures contracts posting double-digit gains.

Several palm oil traders told Reuters over the weekend that more than 400,000 tons of palm-based vegetable ghee and 100,000 tons of palm oil were poised to enter Iraq before May 12 as stipulated by a UN Security Council resolution.

Others disputed the volume, saying Iraq’s annual demand of vegetable ghee was only 360,000 tons. We are thus wondering how they could take so much within the next few weeks, said one.

Business was only reported at 1,500-1,480 in the south and 1,490-1,480 in the central region.—Reuters