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Malaysian palm oil futures fell on Friday, pressured by a stronger ringgit and weakness in competing edible oils on the Dalian exchange, marking their first weekly loss in three weeks.
The benchmark February contract on Bursa Malaysia Derivatives dropped 45 ringgit, or 1.11%, to close at 4,018 ringgit ($981.68) per tonne, its lowest closing level since 25 November.
The contract lost 3.23% for the week.
"Weakness in competing oils, combined with a stronger ringgit, weighed on palm oil prices today," said a Kuala Lumpur-based trader.
The most-active soybean oil contract on the Dalian Commodity Exchange fell 0.5%, while its palm oil contract dropped 1.27%. Soybean oil prices on the Chicago Board of Trade also fell 0.35%.
Palm oil tracks price movements of rival edible oils as it competes for a share of the global vegetable oils market.
Two traders said on Thursday that Chinese state grain stockpiler Sinograin sold most of the soybeans it offered at a state reserves auction, making way for an expected influx of US shipments amid ample domestic supplies.
The ringgit, palm oil's trading currency, rose 0.37% against the US dollar, making the commodity more expensive for holders of foreign currencies.
Separately, crude oil prices rose on Friday, supported by concerns over disruptions to Venezuelan supply, although they remained on track for a weekly decline as a supply glut and a potential Russia-Ukraine peace deal stayed in focus.
Stronger crude oil futures make palm oil a more attractive feedstock for biodiesel production.
On the data front, independent inspection company AmSpec Agri Malaysia said Malaysian palm oil product exports for 1-10 December fell 10.3% compared with the previous month. According to Intertek Testing Services, exports fell 15% over the same period.
Source: Reuters