Malaysian palm oil futures fell on Friday on the back of a stronger ringgit, drawing little support from data showing a rise in export demand as this was in line with forecasts. The February benchmark palm oil contract on the Bursa Malaysia Derivatives Exchange closed 0.39 percent lower at 2,289 ringgit ($534.44) per tonne. "Exports were within expectations," said a trader based in Kuala Lumpur, referring to export data from cargo surveyor Intertek Testing Services.
"Spot prices are weak and the ringgit is strengthening, coupled with a weak Dalian market." Exports of Malaysian palm oil products for November 1-20 rose 4.3 percent from a month earlier to 970,057 tonnes, Intertek Testing Services said. The ringgit had strengthened by as much as 2.2 percent against the dollar earlier in the day, touching its strongest since November 4. A weaker ringgit normally supports palm as it makes the edible oil cheaper for holders of foreign currencies.
Traded volume stood at 53,991 lots of 25 tonnes each, well above the average 35,000 lots usually traded per day. The vegetable oil posted rose 0.4 percent for the week, rebounding from two consecutive weekly declines. A palm oil industry group in Indonesia, the world's top producer, said on Friday it sees little increase in palm output next year with the El Nino dry weather pattern offsetting gains made by maturing plantations. In competing vegetable oil markets, the US December soyoil contract was down 0.1 percent in late Asian trade, while the January soybean oil contract on the Dalian Commodity Exchange was up 0.9 percent.
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