Malaysian palm oil futures reversed losses on Friday to end higher, and posted marginal weekly gains after data from the Malaysian Palm Oil Association showed a drop in production.
FCPO1 palm oil benchmark contract! for April delivery on the Bursa Malaysia Derivatives Exchange closed up 0.55% at 4,213 ringgit ($962.97) per metric ton.
For the week, the contract rose 0.55%, after falling about 4.6% the previous week.
“MPOA production data (January 1 to 20) shows a decline of 13%, thus supporting prices,” said a Kuala Lumpur-based trader.
Market players may trade cautiously ahead of a presentation at the Globoil sugar and bioenergy conference in Bangkok, the trader said.
Dalian’s most active soybean oil contract (DBYcv1) lost 0.83%, while the palm oil contract CPO1! slipped 0.67%. Soybean Oil on the Chicago Board of Trade ZL1! down 0.82%.
Palm oil tracks price movements of rival vegetable oils as it competes for a share of the global vegetable oil market.
Indonesia’s palm oil stocks in November rose 3.2% from the previous month as slowing exports offset falling production, data from Indonesian palm oil association GAPKI showed.
Malaysian palm oil is likely to trade at around 4,000 ringgit a tonne in 2025, barring a brief rise to 4,800 ringgit in February, amid stiff competition from soybean oil, said industry analyst Dorab Mistry.
A Reuters poll shows average Malaysian CPO futures prices are expected to be higher in 2025, as top producer Indonesia increases consumption of palm oil-based biodiesel, although competition from cheaper rivals is expected to limit the rise.
Malaysia’s exports of palm oil products on Jan 1-20 are expected to fall between 18.2% and 23%, according to cargo surveyor Intertek Testing Services and independent inspection firm AmSpec Agri Malaysia.
Source: Reuters
