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Internationally Palm oil Trading Set A Weekly Gain , Exports Are Slumps To 29 % Due to Slow Demand

JAKARTA: Malaysian palm oil futures were set for a weekly gain, even as prices fell on Friday, weighed down by profit-taking ahead of the Lunar New Year holiday.

The benchmark palm oil trading contract for April delivery on the Bursa Malaysia Derivatives Exchange lost 19 ringgit, or 0.49%, to 3,870 ringgit ($902.10) a tonne in early trade.

While Malaysian palm oil  were trading below the MYR 3,900 per tonne mark, close to levels not seen in a month, pressured by a stronger ringgit and worries about weak demand.

Exports from Malaysia, the world’s second-largest producer, during January 1-15 slumped roughly 29% from the previous month,

As shipments to India and China slowed, cargo surveyors’ data showed. On top of that, Malaysia has recently warned that it could stop exporting palm oil to the EU in retaliation to a new law aimed at protecting forests through strict palm oil sales regulation.

On the supply side, Ivy Ng, regional head of plantations research at CGS-CIMB Research, expected Malaysia’s output to rise 3.3% to 19.1 million tonnes this year as labor shortage issues would likely ease in mid-2023.