KUALA LUMPUR: Malaysian palm oil futures ended lower on Friday and posted a second consecutive weekly loss, pressured by sluggish export demand.
The benchmark palm oil contract for March delivery on the Bursa Malaysia Derivatives Exchange fell 74 ringgit, or 1.64%, to 4,434 ringgit a metric ton at the close.
The contract declined 9.6% this week.
Crude palm oil continued its losing streak as export demand remained weak, with this week’s data showing continued declines, said a Kuala Lumpur-based trader.
“The market believes that exports are going to be lower for the next 10 days too,” the trader said.
Cargo surveyors estimate exports of Malaysian palm oil products fell between 7.6% and 8.3% during Dec. 1-20, compared with the same period a month ago.
Edible oil prices tumble on US ethanol plan, record soybean supplies
Earlier, during the session, the market managed to recoup some losses following Indonesia’s decision to raise its crude palm oil export levy.
Indonesia’s chief economic minister on Thursday said it will increase its export levy for crude palm oil to 10% from the current 7.5% to finance higher biodiesel subsidies.
Dalian’s most-active soyoil contract rose 0.99%, while its palm oil contract shed 1.24%. Soyoil prices on the Chicago Board of Trade were down 0.4%.
Palm oil tracks price movements of rival edible oils, as it competes for a share of the global vegetable oils market.
The ringgit, palm’s currency of trade, weakened 0.07% against the dollar, making the commodity cheaper for buyers holding foreign currencies.
Oil prices fell on worries about demand growth in 2025, especially in top crude importer China, putting global oil benchmarks on track to end the week down nearly 3%.
Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
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