SINGAPORE (June 11): Malaysian palm oil futures fell 4.8% on Friday to post their biggest drop in nearly a month due to technical selling after the contract broke support.
The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange ended lower for a fifth consecutive session, falling 4.8% to RM3,658 a tonne, its biggest intraday drop since May 17.
The contract also posted its first weekly drop in three, plunging 11.4%.
“Prices are down due to long liquidation after they broke support,” a Kuala Lumpur-based trader told Reuters.
Prices were also dragged by weak rival oils elsewhere, the trader added.
Dalian’s most-active soyoil contract fell 0.9%, while its palm oil contract slipped 2.5%. Soyoil prices on the CBOT slid 1.4%.
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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