Palm suffers second-weekly loss due to selling pressure

The Malaysian palm futures market posted its second weekly loss Friday, despite closing higher for the day. This was due to a?slower demand that led to a'selling pressure. The benchmark 'contract' for April delivery of palm oil on Bursa Derivatives Exchange in Malaysia rose 13 ringgit or 0.32% to 4,050 Ringgit ($1,037.13) per metric ton by the close. It fell 2.5% in the past week.

After a report that India's palm imports were to be reduced, the contract closed Friday with a gain.

jumped 51%

In January, the price of palm oil rose to its highest level in four months. The wider discount on rival soyoil has encouraged refiners to increase their purchases of tropical oil. Imports of soyoil fell to their lowest level in 19 months.

A Kuala Lumpur based trader commented, "On the weekly loss,

The main reason for the selling pressure is the "expected slowdown in demand due to the cheaper, alternative, and stronger ringgit combined with analysts' moderate expectations on palm futures."

Dalian's palm oil contract, which is the most active contract in Dalian, fell by 1.76% on the day. Chicago Board of Trade soyoil prices dropped by?0.47%.

Chinese markets will close from 16 February to 23 February for Lunar New Year.

The palm ringgit's?currency of trade?, the dollar, has weakened by 0.13%, making it a?cheaper commodity for buyers holding foreign currencies.

A circular posted on the Malaysian Palm Oil Board's website shows that Malaysia has increased its crude palm oil price for March. This change maintains the export duty at 9%. Analysts said that Indonesia's decision to halt biodiesel production and the expectation of increased production in the next few months will likely pressure palm oil prices. However, strong demand and a slowing down of overall output may limit the downside.

(source: Reuters)