JAKARTA: Malaysian palm oil futures fell for a third consecutive session on Friday and looked set to post a second weekly drop amid weakness in rival vegetable oils.

The benchmark palm oil contract for April delivery on the Bursa Malaysia Derivatives Exchange lost 13 ringgit, or 0.31%, to 4,177 ringgit ($948.67)a metric ton by midday.

The contract traded in a tight range between 4,156 ringgit and 4,219 ringgit a ton in early trade, and has dropped 0.31% so far in the week.

“Persistent weakness in the rival oilseed spilled over and pressured Bursa Malaysia crude palm oil futures prices today,” a Kuala Lumpur-based trader said, adding that market participants may trade cautiously ahead of presentation at Globoil sugar and bioenergy conference in Bangkok.

Malaysian palm oil is likely to trade around 4,000 ringgit per metric ton in 2025, except for a brief rise up to 4,800 ringgit in February, amid stiff competition from soyoil, industry analyst Dorab Mistry told the conference on Thursday.

A Reuters poll showed Malaysian CPO futures are expected to average higher in 2025 than last year, as top producer Indonesia boosts palm oil-based biodiesel consumption, although competition from cheaper rivals is expected to limit the upside.

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 lower on weak rival oils

Dalian’s most-active soyoil contract lost 0.91%, while its palm oil contract slipped 0.31%. Soyoil on the Chicago Board of Trade was down 0.97%.

Palm oil tracks price movements in rival edible oils as it competes for a share of the global vegetable oils market.

Palm oil may test resistance at 4,265 ringgit per metric ton, a break above which could open the way towards 4,425 ringgit, said Reuters technical analyst Wang Tao.