Malaysian palm oil extends losses to clock biggest weekly drop in four months

Malaysian palm oil futures on Friday extended losses to a seventh session to log their biggest weekly drop in more than four months, tracking weakness in rival edible oils. The benchmark palm oil contract FCPOc3 for June delivery on the Bursa Malaysia Derivatives Exchange fell 48 ringgit, or 1.34%, to 3,521 ringgit ($795.53) a tonne. The contract hit its lowest closing level since Oct. 4. It has fallen 10.2% in the week, its biggest weekly drop since the week ended Nov. 18. The sell-off in soybean oil, sunflower and rapeseed oils is putting pressure on palm oil prices, although estimates of lower production and end-stocks lent some support to the market, said Paramalingam Supramaniam, director at Selangor-based brokerage Pelindung Bestari. “Palm oil prices have decoupled from fundamentals due to the overall global selling,” Paramalingam said. “It is extremely difficult to pinpoint when exactly the price recovery will occur, we need better overall demand to make that possible.” ...