Palm logs second straight weekly loss, hits lowest closing in 12-weeks

JAKARTA: Malaysian palm oil futures booked a second straight weekly decline on Friday, with prices falling for a sixth straight session to their lowest closing in 12 weeks, on weak export data and expectations of high inventory.

The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange fell 21 ringgit, or 0.46%, to 4,533 ringgit a metric ton, its lowest closing price since July 10. The contract fell 2.98% for the week.

“Bursa Malaysia’s crude palm oil futures is under pressure from poor export, improved production and increasing end-stock to over 3 million tons,” a Kuala Lumpur-based trader said, adding that output increased sharply in September.

Exports of Malaysian palm oil products for September fell between 17.1% and 28.8% compared to August, according to cargo surveyors Intertek Testing Services and AmSpec Agri Malaysia.

Soyoil prices on the Chicago Board of Trade barely changed, up 0.01%. The Dalian Commodity Exchange was closed for a public holiday.

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

Global vegetable oil prices may rise in the coming months and into 2027 on tighter supply as disrupted Black Sea sunflower-oil shipments coincide with declining South American soyoil exports, leading industry analyst Thomas Mielke told an industry conference.

Malaysian palm oil prices are likely to remain between 4,500 and 5,000 ringgit a ton through December, as higher stocks weigh on prices despite expectations of lower production next year due to El Niño, top industry analyst Dorab Mistry said.

Indonesia exported 16.13 million tons of crude and refined palm oil in the January to August period, down 0.39% from a year earlier, statistics bureau data showed.

Palm oil may test support at 4,478 ringgit per ton, a break below which could open the way towards 4,445 ringgit.