Palm oil reverses earlier gains and posts a weekly decline

JAKARTA: Malaysian palm oil futures reversed earlier gains and fell on Thursday, tracking weakness in crude oil prices and profit taking actions ahead of a long weekend.

The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange lost 5 ringgit, or 0.11%, to 4,573 ringgit ($1,151.89) a metric ton at the close.

The futures lost 0.52% for the week.

The market will be closed for a public holiday on Friday, May 1.

Dalian’s most-active soyoil contract rose 0.64%, while its palm oil contract gained 0.99%. Soyoil prices on the Chicago Board of Trade were down 0.58%.

Palm oil tracks the price movements of rival edible oils, as it competes for a share of the global vegetable oils market.

According to independent inspection company AmSpec Agri Malaysia, exports of Malaysian palm oil products for April fell 16.2% compared to March, while according to cargo surveyor Intertek Testing Services, it fell 15.3%.

Indonesia’s crude palm oil output this year may drop by up to 2 million metric tons compared to 2025 due to El Nino-related dry weather and high fertiliser prices driven by the war in the Middle East, the head of the country’s palm oil producer association said on Wednesday.

Indonesia has set its crude palm oil reference price at $1,049.58 per metric ton for May, up from April’s $989.63, a regulation from the Trade Ministry showed on Thursday.

The ringgit, palm’s currency of trade, weakened 0.43% against the dollar, making the commodity cheaper for buyers holding foreign currencies.