SINGAPORE: Malaysian palm oil futures fell on Friday after top buyer India sought to cut vegetable oil imports, while weakness in rival edible oils also weighed on the market.

The benchmark palm oil contract for April delivery on the Bursa Malaysia Derivatives Exchange fell 38 ringgit, or 1%, to 3,760 ringgit ($795.26) a metric ton as markets resumed trade after a holiday on Thursday.

The contract has declined about 6% so far in the week.

Fundamentals

India would step up efforts to boost local oilseed production, the finance minister said on Wednesday, as part of plans to cut pricey imports of vegetable oils from the world’s top edible oil producers.

Dalian’s most-active soyoil contract fell 0.5%, while its palm oil contract declined 0.62%. Soyoil prices on the Chicago Board of Trade dipped 0.2%.

Palm oil extends losses to third session on weaker rival oils

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

The Malaysian ringgit, palm’s currency of trade, weakened 0.02% against the dollar.

Indonesia has increased its palm oil reference price to $806.40 per metric ton for Feb. 1-29, and the reference price will be set monthly starting in February, a trade ministry decree showed on Wednesday.

Palm oil may test support of 3,771 ringgit per metric ton, said Reuters technical analyst Wang Tao.