Energy rout seen weighing on palm prices

Kuala Lumpur

PALM oil futures trading at the highest level since July may weaken as energy prices resume a decline and global soyabean supplies expand, according to Michael Coleman, managing director of RCMA Asset Management Pte.

Futures may trade between US$550 and US$700 a tonne on the Bursa Malaysia Derivatives in the next six to eight weeks as petroleum prices come under pressure again and Brazil's soyabean harvest progresses, Mr Coleman said on March 2. Mr Coleman helps to run the Merchant Commodity Fund, which was worth about US$288 million at the end of January.