KUALA LUMPUR: Malaysian palm oil futures slipped on Friday as heightened US-China tensions weighed on global financial markets, but clocked a 3% rise for the week supported by a forecast of lower end-July inventories. The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange closed down 4 ringgit, or 0.14%, at 2,761 ringgit ($659.74) a tonne.
But it still rose 3.1% for the week, its fourth weekly gain in five. "The market was trading cautiously in the first half and there is some pressure from lower Asian equity markets after the U.S-China spat on tech companies," said Sathia Varqa, co-founder of Singapore-based Palm Oil Analytics.
Meanwhile, the Malaysian Palm Oil Association forecast crude palm oil production in July fell 6.35% on-month to 1.77 million tonnes, Varqa said. A Reuters survey had pegged July production in Malaysia would fall 5%, while stockpiles was seen falling 11.9% to three-year lows. Dalian's most-active soyaoil contract gained 0.01%, while its palm oil contract slipped 0.41%. Soyaoil prices on the Chicago Board of Trade fell 0.86%.
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