Despite the optimism of market players, futures concerning the tropical oil dropped. However, this fall could be lessened by the opportunity offered by biofuel.

KUALA LUMPUR, Nov 29: Malaysian palm oil futures ended lower on Friday as investors booked profits from gains made earlier in the week, but prices were supported by optimism that higher biofuel mandates will stoke edible oil demand and prop up the tropical oil.

Market players had expected industry officials and leading vegetable oil analysts to deliver a bullish palm oil outlook at an industry meeting in Indonesia, and participated in a bout of position squaring on Thursday, although overall trade volumes were low throughout the week. By Friday’s close, the benchmark February contract on the Bursa Malaysia Derivatives Exchange had edged down 0.1per cent to 2,653 ringgit ($824) per tonne.

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