KUALA LUMPUR: Malaysian palm oil futures saw their sharpest fall in seven weeks on Friday evening, weighed down by weak export demand and losses in related edible oils on the U.S. Chicago Board of Trade and China’s Dalian Commodity Exchange.

The palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange was down 1.5 per cent to 2,455 ringgit ($617) a tonne at the close of trade, its biggest drop since April 9. It earlier fell as much as 1.8pc to 2,447 ringgit, but was still up 0.2pc for the week in a third straight week of gains. Trading volume stood at 58,656 lots of 25 tonnes each at the end of the trading day.

“The market is down following Dalian and poor exports,” said a Kuala Lumpur-based futures trader, adding that the market was also weighed down by a technical correction. Palm oil prices hit a seven-week top in the previous session tracking US soyoil strength and supported by a weaker ringgit.

Malaysian shipments of palm oil products during May 1-25 fell 16.6pc from the corresponding period last year.

Published in Dawn, May 26th, 2018