KUALA LUMPUR: Malaysian palm oil futures edged lower on Wednesday as worries over increased production and a stronger ringgit dampened buying.

“Strong growth in March and April production is seen as a bearish factor. The March Southern Palm Oil Millers Association figures released today showed an increase of a whopping 48 per cent,” a trader with a local commodities brokerage in Kuala Lumpur said.

By the day’s close, the benchmark June contract on Bursa Malaysia Derivatives was down 0.51pc at 2,152 ringgit ($582) a tonne.

Total traded volume stood at 29,973 lots of 25 tonnes, below the average 35,000 lots.

Prices also came under pressure from gains in the ringgit, which can curb interest from overseas buyers on the Malaysian market by making palm oil effectively more expensive. Indonesia, the world’s biggest producer of palm oil, will extend a 2011 ban on forest clearing beyond its May 2015 deadline, a government official said on Wednesday.

Published in Dawn, April 2nd, 2015

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