Palm Oil Falls as Rival Oils and Crude Weaken Malaysian Prices

Malaysian palm oil futures closed lower on Friday due to weaker rival edible oils and crude oil prices. The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange fell by 38 ringgit, or 0.77%, to 4,898 ringgit (USD1,200.49) a metric ton at the close.

The contract still managed to post a weekly gain of 1.74%. FCPO futures remained in negative territory on Friday, mirroring selling pressure across the broader commodity complex during Asian trading hours, according to a Kuala Lumpur-based trader.

Dalian's most-active soyoil contract fell by 1.57%, while its palm oil contract lost 2.14%. Soyoil prices on the Chicago Board of Trade were down 0.77%.

Palm oil tracks rival edible oils as it competes for a share of the global vegetable oils market. Market participants are monitoring an official announcement from the Indian government on a potential reduction in import tariffs, which could have implications for Malaysian palm oil demand.