KUALA LUMPUR: Malaysian palm oil futures ended lower on Friday, snapping a two-week rally, as weaker crude oil prices pressured the market.
The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange slid 6 ringgit, or 0.13%, to 4,514 ringgit ($1,068.66) a metric ton at the close. The contract fell 0.68% this week.
The market traded lower as weak crude oil prices weigh on market sentiment, said David Ng, a proprietary trader at Kuala Lumpur-based trading firm Iceberg X Sdn Bhd.
Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
Oil prices edged lower, heading for a weekly loss of around 3% after the IEA forecast a growing glut and U.S. President Donald Trump and Russian President Vladimir Putin agreed to meet again to discuss Ukraine.
Dalian’s most-active soyoil contract added 0.05%, while its palm oil contract shed 0.19%. Soyoil prices on the Chicago Board of Trade were down 0.49%.
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, strengthened 0.02% against the dollar, making the commodity slightly more expensive for buyers holding foreign currencies.
Indonesia, the world’s largest palm oil producer, is considering a plan to require international flights from Jakarta and Bali to use a 1% sustainable aviation fuel blend starting from 2026, energy ministry official Edi Wibowo said.
India has raised the base import prices of gold, silver and all vegetable oils, the government said.
Comments
Comments are closed for this article.