SINGAPORE: Malaysian palm oil futures tumbled on Friday, weighed by a stronger ringgit and as panic buying on supply shortage worries eased.
The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange fell 0.9 per cent to 2,462 ringgit ($591.26) per tonne, recording its biggest percentage drop since October 14.
“The dip was mainly on a firmer ringgit and profit taking ahead of the weekend as the market buying was overdone,” a Kuala Lumpur-based analyst told Reuters.
The contract nearly touched a 20-month high this week at 2,505 ringgit per tonne, its highest weekly price since March 2 last year.
Palm prices this week were supported by supply shortage fears brought by drier-than-usual conditions and a bullish consumption outlook from Malaysia and Indonesia’s biofuel push, which limited losses, the trader said.
Published in Dawn, November 2nd, 2019
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