KUALA LUMPUR: Malaysian palm oil futures closed at their lowest in nearly a month on Thursday, hit by weakness in rival oils and expectations of higher supply as the peak production season begins.

The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange fell 154 ringgit, or 3.72%, to 3,990 ringgit ($890.82) a tonne, it’s lowest since Aug. 5.

The market is under pressure from weakness in commodity markets and expectations of strong production, which could offset exports and push inventories above 2 million tonnes, a Kuala Lumpur-based trader said.

Exports of Malaysian palm oil products for August fell 3% from July, cargo surveyor AmSpec Agri Malaysia said.

Comments

Comments are closed.