JAKARTA: Malaysian palm oil futures opened lower for a second straight session on Thursday, dragged down by weakness in rival vegetable oils.
The benchmark palm oil contract for April delivery on the Bursa Malaysia Derivatives Exchange lost 64 ringgit, or 1.52%, to 4,144 ringgit ($933.02) a metric ton by midday.
“Bursa Malaysia Derivatives crude palm oil futures opened lower today … pressured by a selloff in Chicago soyoil and in South American crude degummed soybean oil FOB markets Wednesday overnight and in Chinese veg oil futures in Asian hours today,” said Anilkumar Bagani, commodity research head at Mumbai-based brokerage Sunvin Group.
China, the world’s biggest soybean buyer, has stopped receiving Brazilian soybean shipments from five firms after cargoes did not meet plant health requirements, which triggered a wave of selling in the soy complex markets, Bagani added.
Dalian’s most-active soyoil contract was down 1.29%, while its palm oil contract slipped 1.68%. Soyoil at the Chicago Board of Trade was down 0.27%.
Palm oil tracks price movements in rival edible oils as it competes for a share of the global vegetable oils market.
Malaysian CPO futures are expected to average higher in 2025 than last year, as top producer Indonesia boosts palm oil-based biodiesel consumption, a Reuters poll showed.
Indonesia’s palm oil fund agency has resumed fund disbursement to subsidise biodiesel and oil palm tree replanting programmes after a brief pause during areorganisation.
Palm oil retreats on weak export demand
Exports of Malaysian palm oil products for Jan. 1-20 are estimated to have fallen between 18.2% and 23%, according to cargo surveyors Intertek Testing Services and independent inspection company AmSpec Agri Malaysia.
Palm oil still targets its Jan. 16 low of 4,106 ringgit per metric ton, as a bounce triggered by this barrier seems to have completed around 4,265 ringgit.
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