KUALA LUMPUR: Malaysian palm oil futures steadied on Friday, buoyed by supply concerns, but logged a weekly loss of 1.4% as October exports fell and demand from top buyer India dwindled.
The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange closed up 3 ringgit, or 0.10%, to 2,869 ringgit ($691.83) a tonne, after falling for two straight sessions.
India's palm oil imports in September fell 27% on-year due to lean demand from hotels and restaurants, while soyaoil purchases jumped 28%, a leading trade body said on Friday.
A surprise drop in Malaysian palm oil exports, as well as rising inventories and a fall in palm-based biodiesel consumption in Indonesia, pressured the market, said Anilkumar Bagani, research head of vegetable oil broker Sunvin Group.
Malaysian exports during Oct. 1 to 15 fell 2% from the month before, cargo surveyors said on Thursday. Soyabean farmers in Argentina are hoarding crops due to foreign exchange uncertainty and Ukraine's sunseed harvest has been hit by poor weather.
Dalian's most-active soyaoil contract fell 1.8% on Friday, while its palm oil contract slipped 2.36%. Soyaoil prices on the Chicago Board of Trade were up 0.66%.
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