KUALA LUMPUR: Malaysian palm futures fell their hardest in three weeks on Wednesday, hit by fears of higher production and slowing demand from top destinations India and China, amid a fast-spreading coronavirus outbreak.

The benchmark contract for May delivery on the Bursa Malaysia Derivatives Exchange closed down 92 ringgit, or 3.5 per cent, at 2,547 ringgit, its sharpest daily drop since Jan 28 and the second straight falling session.

“Worry of higher production in February killed the market today,” said Sathia Varqa, owner and co-founder of Singapore-based Palm Oil Analytics.

Palm oil has suffered as demand slowed this month, with businesses in China shut because of a coronavirus epidemic and India, the world’s largest consumer of edible oils, importing less following curbs on refined palm oil.

Malaysia’s palm oil exports between Feb 1 and 15 dropped 6.7pc to 10pc on the month, cargo surveyors said.

Published in Dawn, February 20th, 2020