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Malaysian palm oil futures fell for a third consecutive session on Friday, heading for a second weekly decline amid weakness in competing vegetable oils.
The benchmark palm oil contract for April delivery on Bursa Malaysia Derivatives lost 13 ringgit, or 0.31%, to 4,177 ringgit ($948.67) per tonne by midday.
The contract traded within a narrow range of 4,156 ringgit to 4,219 ringgit per tonne in early trading, and was down 0.31% for the week so far.
"The persistent weakness in competing vegetable oils has spilled over and weighed on Bursa Malaysia crude palm oil futures today," said a Kuala Lumpur-based trader, adding that market participants may trade cautiously ahead of a presentation at the Globoil Sugar and Bioenergy conference in Bangkok.
Malaysian palm oil is likely to trade around 4,000 ringgit per tonne in 2025, barring a brief spike to 4,800 ringgit in February, amid stiff competition from soybean oil, industry analyst Dorab Mistry said at the conference on Thursday.
A Reuters survey showed Malaysian crude palm oil futures are expected to average higher in 2025 than last year, as top producer Indonesia increases consumption of palm-based biodiesel, although competition from cheaper rival products is expected to limit the upside.
According to data from cargo surveyors Intertek Testing Services and independent Malaysian inspection company AmSpec Agri, exports of Malaysian palm oil products fell between 18.2% and 23% during 1-20 January.
The most active soybean oil contract on the Dalian exchange lost 0.91%, while the palm oil contract fell 0.31%. Soybean oil on the Chicago Mercantile Exchange dropped 0.97%.
Palm oil tracks price movements in competing vegetable oils as it vies for a share of the global vegetable oils market.
Reuters technical analyst Wang Tao said palm oil may test resistance at 4,265 ringgit per tonne, and a break above this level could open the way towards 4,425 ringgit.
Source: Reuters