MUMBAI, 13 Dec (Commoditiescontrol): Malaysian crude palm oil (CPO) futures extended their losses on Friday, weighed down by declining prices of rival vegetable oils on the Chicago Board of Trade and China’s Dalian Commodity Exchange.
The benchmark February contract on the Bursa Malaysia Derivatives Exchange fell by 17 ringgit, or 0.35%, closing at 4,904 ringgit ($1,102.77) per metric ton. This marks a weekly decline of 4.37%, reflecting a challenging week for the market.
Market sentiment remains cautious as palm oil futures trade within a narrow range, awaiting new drivers for direction. "We need to see how the Dalian exchange performs to determine the next move," a local trader noted.
On Friday, Dalian’s most-active soyoil contract dropped by 1.2%, while its palm oil counterpart gained 0.5%. Meanwhile, soyoil on the Chicago Board of Trade slipped by 0.56%.
Palm oil prices are heavily influenced by trends in rival edible oils as the commodity competes for a share in the global vegetable oil market. Adding to the bearish mood, India's palm oil imports in November fell slightly by 0.4% compared to October, reaching 841,993 metric tons, according to the Solvent Extractors' Association of India.
However, export forecasts offered a glimmer of optimism. Cargo surveyor Intertek Testing Services estimated a 3.9% rise in Malaysian palm oil exports for December 1–10, while AmSpec Agri Malaysia projected a smaller 1.1% increase.
Meanwhile, Malaysia’s palm oil production is expected to decline for the fourth consecutive month in December due to heavy rainfall that disrupted harvesting, according to the country’s industry regulator.
In the broader energy market, oil prices edged higher on Friday, posting their first weekly gain since late November. Supply concerns, driven by additional sanctions on Iran and Russia, supported prices, though surplus fears kept gains in check. Firmer crude oil prices make palm oil a more appealing feedstock option for biodiesel production, potentially providing some support for the market in the weeks ahead.
(By Commoditiescontrol Bureau; +91 98201 30172)
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