KUALA LUMPUR: Malaysian palm oil futures stretched gains into a fourth day on Friday to hover at over three-month highs and posting their biggest weekly rise in nearly a year, as the tropical oil drew support from projections of weaker output and easing stocks.

But market players said prices, which are up for a second month having gained 4 per cent in October, may be poised for a correction with possible profit-taking on the way.

While prices have gained 8.3pc from Oct. 20, open interest in Malaysian palm oil futures fell from 267,221 lots on Oct. 20 to an early-August low of 228,662 lots on Oct. 30. It hit a record high of 287,859 lots on Sept. 10.

Published in Dawn, November 1st, 2014