Malaysian palm oil futures ended lower on Friday to follow weaker soyoil markets and as poor exports dragged, although the recent surge in crude prices due to tensions in Iraq lifted weekly prices to their biggest gain in eight. The benchmark September contract on the Bursa Malaysia Derivatives Exchange edged down 0.2 percent to 2,443 ringgit ($758) per tonne by Friday's close, reversing gains from the morning session, with prices trading between 2,434 - 2,474 ringgit.
"Lower exports and worsening demand capped the upside," said a trader with a local commodities brokerage in Malaysia.
Shipments of Malaysian palm oil products during June 1-20 fell 5.8 percent to 806,303 tonnes compared with the same period a month ago, cargo surveyor Intertek Testing Services data showed, as export volumes to Europe and China dived.
"People expected exports to be good because of the Ramadan period," said another trader with a foreign commodities brokerage, referring to the Muslim holy festival starting from end-June that typically drives up consumption of the vegetable oil.
Total traded volume on Friday stood at 36,746 lots of 25 tonnes, just above the average 35,000 lots.
Benchmark palm prices are up 0.6 percent this week to post their biggest weekly gain in eight, as risks of supply disruptions from oil-producing Iraq lifted crude prices and made palm oil a cheaper option for biodiesel feedstock.
The US soyoil contract fell 0.7 percent in late Asian trade, while the most active soybean oil contract on the Dalian Commodities Exchange gained 0.7 percent.
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