KUALA LUMPUR: Malaysian palm oil futures erased earlier gains to fall to a two-week low on Thursday evening, weighed down by weaker soyoil prices on the Chicago Board of Trade (CBOT) and as traders took profits ahead of a long weekend. The Malaysian stock market will be closed on Friday for a public holiday.

The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange declined 1.2 per cent to 2,737 ringgit ($652.29) a tonne at the close of trade. “The market is down partly on CBOT soyoil, and due to the long weekend,” said a Kuala Lumpur based futures trader. Another futures trader earlier said the market was calm ahead of the long weekend. “(Market) sentiment is kept under pressure due to a lack of buying confidence as production is showing some improvement,” she said.

Palm oil prices are affected by movements in related edible oils including soy, as they compete for a share of the global vegetable oils market.

Published in Dawn, September 22nd, 2017