JAKARTA: Malaysian palm oil futures closed lower on Friday, reversing their midday gains. However, they recorded a 2.31% weekly gain, compared with last week.

The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange fell 5 ringgit, or 0.13%, to 3,766 ringgit ($802.39) a metric ton on its closing.

Despite a lower morning open, palm saw continuous buying towards midday close. Prices extended a positive streak, driven by the ongoing Globoil conference held in Mumbai, India until Sept. 30.

The Dalian Commodity Exchange is closed from Sept. 29 to Oct 6 for Mid-Autumn Festival and National Day. Soyoil prices on the Chicago Board of Trade were up at 0.04%.

Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.

World’s largest palm oil producer Indonesia exported 3.52 million metric tons of oil in July, including refined products, up 21.8% from last year.

Indonesia also set its crude palm oil reference price at $827.37 per metric ton for the Oct. 1-15 period, up from $798.83 a ton for the previous 15-day period.

India is likely to start the 2023/24 marketing year with record inventories of edible oils that will curtail new season imports.

Crude palm oil prices in 2024 are likely to average at least 11% more than this year as El Nino weather patterns are expected to reduce output in top producer Indonesia.