Palm Oil Futures Plummet to Seven-Week Low Amid Output Concerns

Malaysian palm oil futures plummeted to their lowest level in over seven weeks on Friday, weighed down by concerns of higher output and sluggish exports.

The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange slid 99 ringgit, or 2.07%, to 4,673 ringgit ($1,148.16) a metric ton, the lowest closing since August 3.

Anilkumar Bagani, research head at Mumbai-based vegetable oil broker Sunvin Group, said higher-than-expected palm oil production and weak exports have raised concerns that Malaysian stocks could exceed 3.1 million tons by the end of September.