KUALA LUMPUR: Malaysian palm oil futures reversed earlier gains to close 1 per cent down on Friday, falling on bearish production outlooks to chart the biggest weekly drop since early November.

The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange was finished 1.1pc down at 2,010 ringgit ($485.39) a tonne for its sixth decline in as many sessions. Palm had earlier lost as much as 1.3pc to 2,006 ringgit, its weakest since Dec 11. For the week, palm lost 5.1pc for a second straight weekly decline. “Market sentiment is still weak overall,” one Kuala Lumpur-based trader said, adding that the industry outlook for production was still bearish.

Palm prices had fallen 3pc on Thursday on weakness in soyoil prices on the Chicago Board of Trade and soft demand sentiment.

Published in Dawn, May 4th, 2019