Malaysian palm oil futures dropped on Friday, tracking falls in crude oil prices and competing vegetable oil markets, although losses were limited by concerns that monsoon rains could curb output in December. The benchmark February contract on the Bursa Malaysia Derivatives Exchange closed 1.1 percent lower at 2,171 ringgit ($621) per tonne. Prices had fallen to a one-week low of 2,119 ringgit on Tuesday. Total traded volume stood at 46,017 lots of 25 tonnes, above the daily average of 35,000 lots. Brent crude futures fell to its lowest level in more than five years below $63 a barrel, under pressure from a glut of oil in the market. Low crude prices raised concern that buyers could shift fuel demand away from palm. Also, market participants expect December monsoon rains and flooding to significantly curb yields of palm fruit and reduce oil extraction rates.
Posted on: Mon, 15 Dec 2014 07:50:37 +0000
Trending Topics
Recently Viewed Topics
© 2015