Palm ends fourth straight week down on swelling stocks, softer crude

Malaysian palm oil futures booked a fourth consecutive weekly decline on Friday, amid expectations of higher October-end stocks and a recent decline in crude oil prices. The benchmark palm oil contract FCPO1! for January delivery on the Bursa Malaysia Derivatives Exchange lost 39 ringgit, or 0.94%, to end at 4,110 ringgit ($973.01) a metric ton. The contract fell 2.31% this week. “Palm stays under pressure due to expectations of higher end stocks, lower crude oil and biodiesel feasibility,” said Sandeep Singh, director of The Farm Trade, a Kuala Lumpur-based consulting and trading firm. With palm oil now at discounts to soyoil and technical chart support at about 4,080 ringgit, some good buying is likely at this support level, Singh added. Malaysia’s palm oil inventories likely climbed to a two-year high in October, as production surged to its strongest level in seven years, outpacing export demand. Stockpiles are projected to have risen 3.5% during the month to 2.44 million ...