JAKARTA: Malaysian palm oil futures fell on Friday and posted their third straight weekly losses, weighed down by weaknesses in rival vegetable oils in the Chicago and Dalian commodity exchanges.
The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange lost 44 ringgit or 1.14% to 3,812 ringgit ($888.16) a metric ton at the close.
The contract fell 0.05% for the week, the lowest weekly loss since September.
Dalian’s most active soyoil contract was down 1.1%, while its palm oil contract for June delivery dropped 1.48%. Soyoil prices on the Chicago Board of Trade (CBOT) tumbled 2.37%.
Palm oil tracks prices of rival edible oils as it competes for a share of the global vegetable oils market.
Exports of Malaysian palm oil products for May 1 – 15 estimated rose between 6.6% and 14.2%, according to independent inspection company AmSpec Agri Malaysia and cargo surveyor Intertek Testing Services.
Palm oil tracks down weaker related oils on Dalian, Chicago exchanges
The Indonesia Palm Oil Association, GAPKI, on Friday urged the government to delay a planned hike in the palm oil export levy, warning it could harm competitiveness amid global trade uncertainties due to the U.S. tariffs and geopolitical tension.
Oil prices extended declines on Friday, under increased supply pressure from an OPEC+ output hike and the prospect of an Iranian nuclear deal, but are heading for a second consecutive weekly gain due to easing U.S.-China trade tensions.
Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
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