KUALA LUMPUR: Malaysian palm oil futures dropped to their lowest in nearly a week on Thursday, backtracking from a rally that had lifted the contract to an eight-month top, after top industry analysts painted a gloomy outlook for the second half of the year.

Leading edible oil analysts at the closely-followed Palm and Lauric Oils Price Outlook Conference in Kuala Lumpur say palm is set for a “year of two halves” — prices may rise over the next few months on tightening supplies, but could plumb six-year lows later in 2015 as output overwhelms demand.

The benchmark May contract on the Bursa Malaysia Derivatives Exchange closed down 1.8 per cent to 2,321 ringgit ($636) a tonne, just off their lowest since Feb 27.

On Wednesday, the contract had climbed to 2,400 ringgit, their highest since July 2014.

Published in Dawn, March 6th, 2015

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