Palm drops on demand concerns, falls 2.2% this week in Malaysia

Malaysian palm oil futures extended losses to a second session on Friday, hitting a three-week low, on a strong ringgit and as sluggish demand outweighed concerns over sunflower oil supplies from the top-producing Black Sea region. The benchmark palm oil contract FCPOc3 for November delivery on the Bursa Malaysia Derivatives Exchange closed down 39 ringgit, or 1%, at 3,813 ringgit ($887.16) a metric ton. The contract lost 2.2 this week. Palm oil is struggling to recover despite overnight gains in soyoil and concerns over sunoil supplies, said a Mumbai-based trader. “Demand is not supporting a recovery in palm oil.” Ukraine accused Russia on Thursday of using strategic bombers to strike a civilian grain vessel in the Black Sea waters near NATO member Romania, raising concerns over sunoil’s supply. The Chicago Board of Trade soyoil BOc2 edged down 0.7%. Palm oil tracks price movements in related oils as they compete for a share in the global vegetable oils market. “The potential ...