JAKARTA: Malaysian palm oil futures closed lower for a third straight session on Wednesday, tracking weakness in rival Dalian edible oils.
The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange lost 51 ringgit, or 1.13%, to 4,454 ringgit ($1,054.45) a metric ton at the close.
“Today, futures are tracking Dalian weakness while waiting for new leads to move the market,” a Kuala Lumpur-based trader said.
Dalian’s most-active soyoil contract lost 0.99%, while its palm oil contract shed 1.69%. Soyoil prices on the Chicago Board of Trade were up 0.3%.
Palm oil tracks price movements of rival edible oils, as it competes for a share of the global vegetable oils market.
Indonesia’s biodiesel consumption from January to September stood at 10.57 million kilolitres, its energy minister Bahlil Lahadalia said, up nearly 10% from 9.61 million kilolitres a year earlier.
Data from cargo surveyor Intertek Testing Services showed exports of Malaysian palm oil products for October 1-20 rose 3.4% from a month earlier, while independent inspection company AmSpec Agri Malaysia said they rose 2.5%.
The Malaysian Palm Oil Council said on Tuesday crude palm oil prices would hold steady above 4,400 ringgit ($1,042) per ton heading into 2026, amid uncertain palm and soybean oil exports.
Oil prices pushed higher for a second day on Wednesday, rising by about 2%, buoyed by hopes of progress of a U.S. trade deal with China and India.
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
The ringgit palm’s currency of trade, weakened 0.05% against the dollar. A weaker ringgit makes the commodity less expensive for buyers holding foreign currencies.
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