VEGOILS - Palm oil drops as the weather improves in Malaysia. Gains for a second consecutive week
The price of Malaysian palm oils futures fell on Friday as supply concerns eased. However, the contract continued to rise for the second consecutive week, thanks to improved weather conditions in Malaysia, the second largest producer in the world.
The benchmark palm-oil contract for February delivery at the Bursa Derivatives Exchange fell 3 ringgit or 0.06% to 5,132 Ringgit ($1,161.87) per metric ton.
The contract increased by 2.29% in the last week.
Paramalingam Supramaniam is the director of Selangor brokerage Pelindung Bestari.
The country's Meteorological Department forecast monsoon rains from Dec. 8-14, which could bring continual rains to parts of Sabah and Sarawak on Borneo Island and the east coast of Malaysia peninsula.
He added that the contract was also becoming less restrictive as the demand for January is minimal. Market participants were waiting to see more information from Malaysian Palm Oil Board on November's performance.
Dalian's palm oil contract, which is the most active contract, fell by 0.41%. Chicago Board of Trade Soyoil increased by 1.25%.
As palm oil competes to gain a share in the global vegetable oil market, it tracks the price fluctuations of competing edible oils.
A survey shows that Malaysian palm oil inventories will have declined in November for the second month running as torrential rainfall disrupted production.
The technical analyst Wang Tao predicted that palm oil would continue to rise, reaching a range of 5,202-5,242 Ringgit per ton, due to a wave 5. ($1 = 4.4170 ringgit)
(source: Reuters)
