Pakistan News

Palm oil falls

Palm oil falls

KUALA LUMPUR: Malaysian palm oil futures fell on Thursday as comparative soy markets weakened and investors fretted about a build-up in stocks in the world’s No.2 producer, cutting short a rally that had lifted prices up 6 per cent in the past week.

Benchmark prices shot up from their weakest point of 2,070 ringgit on April 29 to a top of 2,200 ringgit on Wednesday, tracking big gains in overseas soyoil markets and as investors covered short positions after Indonesia approved a palm export levy to fund its biodiesel policies.

But prospects of swelling inventories in Malaysia, as well as investors booking profits from the rally, reined in gains, market players said. The benchmark July contract on the Bursa Malaysia Derivatives exchange had edged down 0.5pc to 2,173 ringgit ($604.87) a tonne by Thursday’s close.

Total traded volume stood at 29,058 lots of 25 tonnes each, below the usual 35,000 lots.

Published in Dawn, May 8th, 2015

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