KUALA LUMPUR: Malaysian palm oil futures on Friday logged their worst week in two months over concerns that top buyers China and India might strengthen regulation on speculative activities, but likely tighter supply capped losses.
The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange ended down 45 ringgit, or 0.91%, at 4,923 ringgit ($1,186.84) a tonne, falling for a second straight day. The contract declined 0.77% for the week, its second straight weekly drop and its biggest since the week ended Aug. 20.
The market is concerned that regulators in India and China could increase scrutiny on speculative trading to tame record high prices, after China signalled it might intervene to cool surging prices of coal futures.
There is still a concern on supply levels in Malaysia and Indonesia as production peaked in August, said Marcello Cultrera, institutional sales manager and broker at Phillip Futures in Kuala Lumpur. Dalian’s most-active soyoil contract fell 4.6%, while its palm oil contract dropped 5.5%. Soyoil prices on the Chicago Board of Trade were up 0.2%.
Source: Brecorder
