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Malaysian palm oil futures fell on Friday, posting a third consecutive weekly loss, dragged down by weaker prices for rival vegetable oils on the Chicago and Dalian commodity exchanges.
The benchmark palm oil contract for August delivery (FCPO1!) on Bursa Malaysia Derivatives dropped 44 ringgit, or 1.14%, to close at 3,812 ringgit ($888.16) a tonne.
That left the contract down 0.05% for the week, its smallest weekly decline since September.
The most-active soybean oil contract on the Dalian exchange (DBYcv1) fell 1.1%, while the June palm oil contract (CPO1!) dropped 1.48%. Soybean oil prices on the Chicago Board of Trade (CBOT) (ZL1!) slumped 2.37%.
Palm oil tends to track price movements in competing vegetable oils as it vies with them for a share of the global market.
According to estimates from independent inspection firms AmSpec Agri Malaysia and Intertek Testing Services, Malaysia's exports of palm oil products rose by between 6.6% and 14.2% during 1–15 May.
Separately, the Indonesian Palm Oil Association (GAPKI) on Friday urged the government to postpone a planned increase in palm oil export levies, warning that the move could harm the country's competitiveness amid global trade uncertainty stemming from US tariffs and geopolitical tensions.
In energy markets, crude oil prices continued to slide on Friday, pressured by rising supply after OPEC raised output and the prospect of a nuclear deal with Iran, though they were on track for a second straight weekly gain on easing US-China trade tensions.
Weaker crude oil prices make palm oil a less attractive feedstock for biodiesel production.
Source: Reuters.