Palm oil declines due to weaker rival oils
The price of Malaysian palm oils futures fell for the second session in a row on Thursday. This was due to the weakness in vegetable oils.
At midday, the benchmark April palm oil contract on Bursa Malaysia's Derivatives exchange fell 64 ringgit or 1.52% to 4,144 Ringgit ($933.02).
Anilkumar bagani, head of commodity research at Mumbai-based Sunvin Group, said that "Bursa Malaysia derivatives crude palm oil Futures opened lower today"... due to a selloff on the Chicago soyoil market and on South American crude degummed bean oil FOB markets overnight Wednesday and Chinese veg oils futures during Asian hours today.
Bagani said that China, the largest soybean buyer in the world, stopped receiving Brazilian soybeans from five companies after the cargoes failed to meet plant health standards. This triggered a selling wave on the soy complex market.
Dalian's palm oil contract, which is the most active contract in Dalian, fell 1.68%. Chicago Board of Trade Soyoil was down by 0.27%.
As palm oil competes to gain a share in the global vegetable oil market, it tracks the price changes of rival edible oils.
A poll shows that Malaysian CPO Futures will average higher than they did last year in 2025, as Indonesia, the top palm oil producer, increases its biodiesel-based palm oil consumption.
After a short pause due to a reorganisation, the Indonesian palm oil fund agency resumed funding disbursement for biodiesel and oil-palm tree replanting programs.
According to Intertek Testing Services, a cargo surveyor and AmSpec Agri Malaysia, an independent inspection company, the exports of palm oil products from Malaysia for January 1-20 have decreased between 18.2% to 23%.
The low price of 4,106 Ringgit per metric tonne for palm oil is still the target. A bounce that was triggered by this barrier has completed at around 4,265 Ringgit.
(source: Reuters)
