Palm oil set for 4% weekly fall on demand concerns

KUALA LUMPUR: Malaysian palm oil futures fell for a fourth straight session on Friday, heading for their first weekly drop in three, on global demand concerns as the fast-spreading coronavirus that has forced countries into lockdowns showed no signs of abating.

The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange hit its lowest since March 23 and was down 32 ringgit, or 1.38 per cent, to 2,279 ringgit ($525.72) per tonne by 0252 GMT.

Palm was down more than 4 per cent for the week on mounting concerns over a slump in global demand for the edible oil as the number of coronavirus cases around the world surpassed 1 million.


FUNDAMENTALS
Malaysia's end-March palm oil stocks likely rose 1 per cent from the month before to 1.67 million tonnes, according to forecasts from CGS-CIMB Research.

Malaysia's commodities ministry is appealing to its biggest palm producing state, Sabah, to reopen plantations that have been suspended until mid-April in the fight against the coronavirus, the minister told state TV on Thursday.

Dalian's most-active soyoil contract gained 0.67 per cent, while its palm oil contract fell 0.66 per cent. Soyoil prices on the Chicago Board of Trade were up 0.72 per cent.

Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.

Palm oil may fall towards 2,253 ringgit per tonne, as it has cleared a support at 2,327 ringgit, said Reuters technical analyst Wang Tao.