JAKARTA: Malaysian palm oil prices posted a sixth consecutive weekly gain, although rising prices hit demand and sent the edible oil lower on Friday.
The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange fell 1.26% at 4,371 ringgit ($1,036.27) a tonne on Friday.
The lower close followed a slight rise in early trade but follow-through buying did not emerge, a Kuala Lumpur-based trader told Reuters.
“BMD CPO futures closed lower on profit taking pressured by an absence of destination demand due to very high prices,” said Anilkumar Bagani, head of research at Mumbai-based vegetable oils broker Sunvin Group.
Palm rose more than 2% this week supported by stronger soyoil prices and eased production concerns amid a labour shortage in Malaysia.
On Friday, Dalian’s most-active soyoil contract rose 0.04% while its palm oil contract gained 2.09%.
Soybean oil prices on the Chicago Board of Trade fell 1.48%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
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