(For physical price assessment, see MPOI1)
Oct. 4 (Bloomberg) -- Palm oil capped the third weekly loss in four on concerns that rising output from Malaysia may boost reserves and a rally in the nation’s currency will make assets denominated in ringgit less attractive.
The contract for December delivery closed little changed at 2,305 ringgit ($724) a metric ton on the Bursa Malaysia Derivatives. Futures fell 0.2 percent this week. Palm for physical delivery in October was at 2,320 ringgit, data compiled by Bloomberg show.
Global palm supply will advance 5 percent to a record 58.1 million tons in 2013-2014, boosting stockpiles by 17 percent to an all-time high of 9.2 million tons, the U.S. Department of Agriculture estimates. The Malaysian ringgit advanced to almost a two-week high today, reducing prospects for exports.
“A stronger ringgit and bearish supply-side fundamentals are weighing on prices,” said Isha Trivedi, an analyst at PhillipCapital India Pvt. “Rising output would mean supply will outstrip demand.”
Soybean oil for delivery in December fell 0.4 percent to 40.11 cents a pound on the Chicago Board of Trade after climbing 2.3 percent yesterday. Soybeans for November delivery fell 0.4 percent to $12.835 a bushel after a 1.1 percent jump yesterday.
--Editor: Thomas Kutty Abraham