SINGAPORE: Malaysian palm oil futures fell on Friday after touching record highs in the previous session, as Chicago soyoil contracts weakened overnight on a bearish stocks report from the US Department of Agriculture.
The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange fell 40 ringgit, or 0.9%, to 4,555 ringgit a tonne, after rising to a record high of 4,595 ringgit on Thursday.
The contract is also set to rise for the second consecutive week, up 2.9%.
Friday's fall was due to weakness in soyoil on the Chicago Board of Trade (CBOT) following a quarterly stock report from the USDA, a Kuala Lumpur-based trader told Reuters.
The United States ended the crop year with slightly more soybean supplies than expected, the report showed on Thursday.
The CBOT soybean oil contract last fell 0.7%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
FUNDAMENTALS
Oil prices dropped on Friday on the prospect that the OPEC+ supplier alliance might step up a planned increase in output to ease supply concerns, with soaring gas prices spurring power producers to switch from gas to oil.
US wheat futures edged up to near a three-week high on Friday, after the USDA pegged stocks at their lowest level since 2007.
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