Malaysian palm oil futures fell further on Friday as the ringgit firmed against the dollar, pushing palm prices to fresh two-and-a-half week lows. The benchmark December palm oil contract on the Bursa Malaysia Derivatives exchange lost 2.6 percent at the end of the trading day, reaching 2,217 ringgit ($537.45) a tonne. "The market fell more or less because of the ringgit," said a Kuala Lumpur based trader. "People have also become concerned about the production side, and palm's closing stocks seem to be very high."
Traded volume stood at 41,189 lots of 25 tonnes each, above the average 35,000 lots usually traded in a day. The Malaysian Palm Oil Board is set to release September palm oil data on Monday. Local output and stockpile levels are expected to reach record highs, which could further dampen palm prices. Palm oil is expected to stabilise around a support at 2,234 ringgit per tonne and then rise towards a resistance at 2,283 ringgit, as the drop from the September 29 high of 2,460 ringgit has more or less completed, said Reuters market analyst for commodities and energy technicals Wang Tao. In other vegetable oil markets, the US December soyoil contract rose 0.1 percent, while the January soybean oil contract on the Dalian Commodity Exchange gained 1 percent.
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