KUALA LUMPUR: Malaysian palm oil futures on Friday were set for a 6.5% weekly loss as fresh Covid-19 curbs in top buyer China added to demand worries, with expectations of higher output in Malaysia weighing on prices further.
The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange slid 89 ringgit, or 2.23%, to 3,905 ringgit ($871.17) a tonne during early trade, their lowest since Aug. 5.
Traders are expecting production in Malaysia to rise as the peak harvest months arrive, but they are also concerned that poor demand might lead to a build-up of stocks. The southern Chinese tech hub of Shenzhen tightened
Covid-19 curbs, while the southwestern metropolis of Chengdu announced a lockdown of its 21.2 million citizens, stoking demand fears.
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