KUALA LUMPUR: Malaysian palm futures fell 1.5 per cent on Friday and recorded their worst weekly decline in more than 11 years, dragged down by India’s import restrictions on the refined product and an export tax hike.
The benchmark palm oil contract for April delivery on the Bursa Malaysia Derivatives Exchange closed down 43 ringgit, or 1.5 per cent, at 2,843 ringgit ($701.63), its lowest in a month. The week’s decline of 9.2pc is the biggest since October 2008.
“Prices plunged after India imposed restrictions on refined palm oils,” said Paramalingam Supramaniam, director at Selangor-based brokerage Pelindung Bestari Sdn Bhd.
The market is also wrestling with a drop in production, with refineries running at half their capacity as mills are not supplying enough crude palm oil for processing, Paramalingam said.
Published in Dawn, January 18th, 2020