KUALA LUMPUR: Malaysian palm oil futures ended a six-day rally on Friday, falling nearly 2% pressured by estimates of higher August inventories, although the contract racked up a second straight weekly gain. Malaysia's palm oil stockpile at end-August is pegged to rise 5.4% from July, its first increase in four months, a Reuters survey showed. August production likely grew 2%, while exports plummeted 14%.
The higher production and stock forecast is pressuring palm prices, a Singapore-based trader said. The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange closed down 57 ringgit, or 1.97%, to 2,834 ringgit ($683.39) a tonne, after falling as much as 2.8%.
Palm had climbed 2.8% to more than seven-month high in the previous session and rose 3.5% for the week. The market is also trading cautiously ahead of Sept. 1-5 export data by cargo surveyors due on Saturday, traders said. Dalian's most-active soyaoil contract fell 0.41%, while its palm oil contract dropped 1.58%.