Palm logs near 3pc weekly loss, ends four-week climb as Nov exports tumble

KUALA LUMPUR: Malaysian palm oil futures extended early losses on Friday and fell nearly 3pc for the week, as a deep slump in exports during the first half of November stoked demand worries.

The benchmark palm oil contract for February delivery on the Bursa Malaysia Derivatives Exchange closed down 1.62pc at 3,288 ringgit ($803.91) a tonne.

For the week, it has declined 2.7pc after climbing for four consecutive weeks.

"Worries about demand destruction due to high prices in major consuming countries triggered the selling spree today," said Paramalingam Supramaniam, director at Selangor-based brokerage Pelindung Bestari.

Exports from Malaysia during Nov. 1-20 fell 16pc from the same period, cargo surveyors said.

The market is also trading on expectations of higher palm imports from Indonesia, which is likely holding local stocks at 1.6 million tonnes, said Marcello Cultrera, institutional sales manager & broker at Phillip Futures in Kuala Lumpur.

Dalian's most-active soyoil contract fell 0.5pc, while its palm oil contract fell 2.7pc.

Soyoil prices on the Chicago Board of Trade were up 0.5pc.

Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.

China's securities market regulator said it will give foreign investors access to trade its palm oil futures contract on the Dalian Commodity Exchange from Dec. 22.