Palm oil snaps 5-day rally

October 12, 2019

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KUALA LUMPUR: Mala­ysian palm oil futures ended lower on Friday after five days of gains following news that India is considering restricting imports from Malaysia.

The benchmark palm oil contract for December deliv­ery on the Bursa Malaysia Derivatives Exchange fell 0.9 per cent to 2,185 ringgit ($522.23) per tonne.

The market however is still up by 1.7pc on the week. Palm oil was earlier also weighed down by a stronger ringgit , its currency of trade, which makes it more expensive for foreign buyers. The ringgit was stronger against the dollar by 0.1pc at 4.1840 around 1050 GMT on Friday.

“Prices were earlier up on soyoil and Dalian strength,” said a Kuala Lumpur based futures trader, referring to US soyoil on the Chicago Board of Trade and related edible oils on China’s Dalian Commodity Exchange. “Towards the end of the trading session there was news of India restricting Malaysian palm oil... Prices dropped sharply.”

Published in Dawn, October 12th, 2019