MUMBAI: Malaysian palm oil futures extended falls on Friday to seven-month lows as sluggish demand and expectation of higher production in the coming months weighed on the vegetable oil market.

The benchmark palm oil contract on the Bursa Malaysia Derivatives Exchange was down 0.36 per cent, or 7 ringgit, at 1,956 ringgit ($472.41) per tonne by the midday break, heading for a seventh consecutive session of losses.

Earlier in the session, it fell to its lowest since Nov 27, 2018 at 1,951 ringgit.

For the quarter, the tropical oil has shed 7pc in what would be its seventh quarterly drop in a row.

“Exports are not picking up despite the correction in prices,” said one Kuala Lumpur-based trader, referring to Friday’s move. “On supply side, production is set to rise in coming months. That will put additional pressure on prices.”

Published in Dawn, June 29th, 2019