KUALA LUMPUR: Malaysian palm oil futures fell on Friday because of weakness in rival edible oils and gains in the ringgit, with the benchmark contract set to post a second consecutive annual loss.

The benchmark palm oil contract for March delivery on the Bursa Malaysia Derivatives Exchange slid 42 ringgit, or 1.12%, to 3,697 ringgit ($806.32) during early trade.

The contract is set for an 11% decline this year. The El Nino weather phenomenon, which brought dryness to large parts of Asia, capped losses in the market this year.

Palm oil extends gains on support from rival oils

Dry El Nino weather is forecast to continue into the first half of 2024, putting at risk global palm oil production.