JAKARTA: Malaysian palm oil futures reversed previous gains and fell on Tuesday after the market followed softening of rival vegetable oils prices at the Dalian market.
The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange lost 5 ringgit, or 0.11 percent, to 4,508 ringgit (USD1,067.23) a metric ton at the close.
Dalian’s most-active soyoil contract lost 0.22 percent, while its palm oil contract fell 0.81percent. Soyoil prices on the Chicago Board of Trade were up 0.12percent. Palm oil tracks price movements of rival edible oils, as it competes for a share of the global vegetable oils market.
The Malaysian Palm Oil Council said on Tuesday that crude palm oil prices will hold steady above 4,400 ringgit (USD1,042) per metric ton heading into 2026, amid uncertain palm and soybean oil exports. According to cargo surveyor Intertek Testing Services, exports of Malaysian palm oil products for October 1-20 rose 3.4percent compared to the September 1-20 period, while independent inspection company AmSpec Agri Malaysia said it rose 2.5percent.
Meanwhile, the Chicago Board of Trade soybean futures hit their highest level in a month on Monday on renewed optimism over US-China trade talks.
The ringgit, palm’s currency of trade, weakened 0.05 percent against the dollar. A weaker ringgit would make the commodity less expensive for buyers holding foreign currencies.
Oil prices held steady on Tuesday after a fall in the previous session as concerns about oversupply and risks to demand, along with the trade dispute between the US and China, the world’s top two oil consumers, weigh on the markets. Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
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