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Palm oil prices closed lower on Friday and logged a second consecutive weekly loss, weighed down by weaker Chicago soyoil futures and continued sluggish Malaysian palm oil export performance.
The benchmark June contract on Bursa Malaysia Derivatives fell 37 ringgit, or 0.84%, to close at 4,376 ringgit ($990.27) a tonne.
The contract lost 4.37% for the week.
Anilkumar Bagani, head of research at vegetable oil brokerage Sunvin Group, said: "Futures traded range-bound today, opening lower under pressure from weaker Chicago soyoil and continued weak Malaysian palm oil export performance."
"However, prices were seen rebounding on hopes of a demand recovery from importing destinations, particularly China and India."
China and India are the world's largest palm oil importers.
According to independent cargo surveyor AmSpec Agri Malaysia, exports of Malaysian palm oil products fell 5% in the 1-20 March period, while Intertek Testing Services reported a decline of 14.2%.
Dalian Palm Oil Prices Rise
The most-active soyoil contract on the Dalian exchange fell 0.12%, while its palm oil contract rose 0.29%. Meanwhile, soyoil prices on the Chicago Mercantile Exchange (CBOT) slipped 0.44%.
Palm oil tracks the price movements of competing vegetable oils, as it competes for a share of the global vegetable oils market.
Argentina's main grains exchange, the world's largest exporter of soybean oil and meal, cut its 2024/2025 soybean crop forecast by one million tonnes on Thursday, as the impact of drought became increasingly clear.
Indonesia will raise palm oil export levies to between 4.5% and 10% of the crude palm oil reference price, up from 3% to 7.5%, to fund a mandatory increase in the amount of palm oil used in biodiesel production, a farmers' fund official said on Tuesday.
Oil prices rose in early Asian trade on Friday, heading for a second straight weekly gain, after the United States imposed new sanctions on Iran and OPEC+ unveiled a new plan for seven members to cut output, reinforcing expectations of tighter supply.
Stronger crude oil futures make palm oil a more attractive feedstock for biodiesel production.
The ringgit, the currency used in palm oil trade, rose 0.11% against the US dollar, making the commodity more expensive for buyers holding foreign currencies.
Source: Reuters