KUALA LUMPUR: Malaysian palm oil lost ground on Monday, falling 1.5 per cent as stocks and commodities slid after Greece rejected terms of a bailout package, raising risk of a global financial crisis.

Shares fell in Europe and Asia, the euro stumbled and yields on weaker euro zone economies’ bonds rose after Greece overwhelmingly voted against conditions for a rescue package, but there was no rout and contagion was limited.

The September palm oil contract on the Bursa Malaysia Derivatives exchange finished down 1.5pc, or 35 ringgit, at 2,235 ringgit ($588) a tonne. Total traded volume stood at 36,835 lots of 25 tonnes each, slightly above the usual 35,000 lots.

Palm oil climbed to 2,285 ringgit on Friday, highest since June 25. The market is awaiting data on palm oil production, exports and stocks due to be released by the Malaysian Palm Oil Board later this week.

“Production might be bit lower because of the fasting month,” the trader said.—Reuters

Published in Dawn, July 7th, 2015

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