KUALA LUMPUR: Malaysian palm oil futures fell on Wednesday, weighed down by softer rival oils and crude, while the failure to break through a key technical level also pressured the market.
The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange slid 35 ringgit, or 0.78 percent, to 4,441 ringgit (USD1,056.12) a metric ton at the close.
The contract rose 2.19 percent on Tuesday. The absence of follow-through buying and failure to break key psychological levels weighed on the crude palm oil futures and rival Dalian, a Kuala Lumpur-based trader said.
Both Dalian and FCPO failed to break above the psychological mark of 9,500 yuan and 4,500 ringgit, respectively, the trader added. Dalian’s most-active soyoil contract rose 0.02 percent, while its palm oil contract shed 0.78 percent. Soyoil prices on the Chicago Board of Trade declined 0.55 percent.
Palm oil tracks price movements of rival edible oils, as it competes for a share of the global vegetable oils market. Oil prices fell by more than 1percent ahead of a weekend meeting of OPEC+ producers that is expected to consider another increase in production targets in October. Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
The ringgit, palm’s currency of trade, remained unchanged against the US dollar. India’s palm oil imports surged in August to a 13-month high, as competitive pricing relative to soyoil prompted refiners to ramp up purchases ahead of the festive season, according to five dealers.
European Union soybean imports so far in the 2025/26 season that started in July had reached 2.29 million tons by August 31, compared with 2.42 million tons a year earlier, while palm oil imports fell to 0.42 million tons from 0.58 million tons, data published by the European Commission showed.
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