SINGAPORE: Malaysian palm oil futures reversed gains and fell as traders locked in profit and the ringgit firmed, although weekly prices were the highest in almost three years on supply worries. The benchmark palm oil contract for February delivery on the Bursa Malaysia Derivatives Exchange fell 1.3 per cent to 2,853 ringgit ($684.17) a tonne when the session ended on Friday.

“The prices fell due to a firm ringgit and profit-taking,” said a Kuala Lumpur based trader.

Malaysia, the world’s second-largest producer and exporter of palm oil, raised its export tax for crude palm oil to 5pc for January, marking the first tax hike in one-and-a-half years.

Published in Dawn, December 14th, 2019