KUALA LUMPUR: Malaysian palm oil futures fell in Friday evening trade, charting a third day of losses in four on expectations of rising output.

The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange was down 0.2 per cent at 2,442 ringgit a tonne at the close. Traded volumes stood at 24,646 lots of 25 tonnes.

“Palm prices are in decline as the market expects production to rise, especially after the Raya holidays,” a Kuala Lumpur-based trader said, referring to the Eidul Fitr festival that marks the end of the fasting month of Ramazan.

The Muslim holy month, which fell in June this year, brings down productivity at palm oil plantations and hits harvesting because many workers go on leave.

Indonesia and Malaysia, which produce nearly 90pc of global palm oil, are Muslim-majority countries that observe Ramadan and Eid, leading to a shortage of workers for the harvest.

Published in Dawn, June 24th, 2017