JAKARTA: Malaysian palm oil futures closed up on Friday, although they posted a 5.41% weekly decline, snapping gains from the previous week.
The benchmark palm oil contract for March delivery on the Bursa Malaysia Derivatives Exchange gained 41 ringgit, or 0.95%, to 4,374 ringgit ($972.65) a metric ton at the close.
“The futures seen shrugging off weakness in early trade as India, the biggest edible oil importer in the world stepped up palm oil buying and bought around 100,000 metric tons of palm oil in the first two working days in 2025,” said Anilkumar Bagani, head of research at Mumbai-based vegetable oil broker Sunvin Group.
India’s palm oil coverage for the first quarter of 2025 is running “dangerously low,” he said.
In December, India’s palm oil imports plunged to their lowest in nine months as a rally in prices to a 2-1/2-year high prompted refiners to increase purchases of substitute soyoil that was available at a discount.
Malaysian palm oil futures lower after news on Indonesia’s B40 delay
Indonesian companies will get a 1-1/2 month transition period to meet the new B40 biodiesel requirement, Deputy Energy and Mineral Resources Minister Yuliot Tanjung told reporters on Friday.
Exports of Malaysian palm oil products for December fell 2.5%, according to AmSpec Agri Malaysia, while Intertek Testing Services said they declined 7.8%.
Dalian’s most-active soyoil contract dropped 2.56% and its palm oil contract fell 1.36%. Chicago Board of Trade soyoil futures were down 0.1%.
Oil prices were little changed on Friday and poised for weekly gains after closing at their highest in more than two months in the previous session, underpinned by expectations of further economic stimulus in China and lower U.S. interest rates.
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
The ringgit, palm’s currency of trade, fell 0.49% against the U.S. dollar, making the commodity cheaper for buyers holding foreign currencies.
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