alaysian palm oil futures edged up on Friday, taking a breather after two days of losses, but worries about slowing demand for the tropical oil kept palm on course for its third straight weekly loss.
Malaysian palm prices have fallen 2.6 percent so far this week, dragging March´s prices down 5 percent - their biggest fall since Feb. 2013.
“People are building back their long positions. They are coming back to the market, those who liquidated their positions yesterday are going long again,” said a trader with a foreign commodities brokerage. But gains were capped by lacklustre demand for palm. Market players are anticipating Malaysia´s palm oil exports for March to be weaker than a month ago as major consumers trim back purchases.
“The market is still expecting a lower full-month number (for March),” the Kuala Lumpur-based trader added. By the midday break, the benchmark June contract on the Bursa Malaysia Derivatives Exchange had edged up 0.2 percent to 2,658 ringgit ($813) per ton.