KUALA LUMPUR: Malaysian palm oil futures reversed early gains on Friday on profit-taking, but higher soyaoil prices and concerns of lower supply in October helped the contract log a 5.6% weekly gain. The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange closed down 27 ringgit, or 0.84%, at 3,181 ringgit a tonne, its highest since Dec. 19, 2016.

Palm prices retreated from a more than eight-year high in the previous session, but marked a third straight weekly gain and the steepest weekly rise in four. Malaysia's palm oil inventories likely slumped to a three-year low in October, a Reuters poll showed, as rainy weather and coronavirus curbs hit output, while exports were expected to rise.

The palm futures market will try to adjust itself to remain competitive with soyaoil prices on the Chicago Board of Trade, where it is still trading neck-and-neck, Bagani said. Palm prices were trading $10 below competing soyaoil prices, which were down 0.7%. Dalian's most-active soyaoil contract rose 1.7% and its palm oil contract gained 1.4%.