KUALA LUMPUR: Malaysian palm oil futures fell on Friday and hit their lowest level in 3 weeks, snapping a two-week uptrend, on rising scepticism among investors about the sustainability of the robust export demand seen this month.
Palm futures in Malaysia have dropped for four out of the past five sessions, although data showing a surge in May exports by the second-biggest producer limited losses.
The contract clawed back some gains on Thursday as weak prices attracted bargain hunters, but brewing doubts on demand from key buyers in the coming months weighed. Cargo surveyor data showed an up to 53 per cent surge in shipments of Malaysian palm oil between May 1-20.
The benchmark August contract on the Bursa Malaysia Derivatives exchange had sunk 1.02pc to 2,136 ringgit ($596.31) a tonne.
In afternoon trading prices touched the 2,127 ringgit level, their lowest in three weeks. Palm is down 1.4pc for the week, its first decline after two weeks of gains. Total traded volume stood at 34,598 lots of 25 tonnes each, below the average 35,000 lots.
Published in Dawn, May 23rd, 2015
On a mobile phone? Get the Dawn Mobile App: Apple Store | Google Play
Dear visitor, the comments section is undergoing an overhaul and will return soon.