Palm tumbles, posts steepest weekly fall in nearly two years

Malaysian palm oil futures fell sharply on Friday, with the January contract losing 119 ringgit, or 2.72%, to finish at 4,258 ringgit ($1,049.54) a metric ton. Business Recorder reported that this was its lowest close since March 5; the contract dropped 9.04% over the week, its largest weekly decline since mid-December 2024.

The decline came as competing soyoil prices weakened: Dalian soyoil fell 1.41%, its palm oil contract lost 2.41%, and Chicago Board of Trade soyoil slipped 0.53%. A Kuala Lumpur-based trader cited by the publisher said pressure from soybean oil weighed on palm, which competes with other edible oils for buyers.

Lower crude prices also tend to reduce palm oil’s appeal as a biodiesel input, while the ringgit’s 0.3% decline against the dollar made the commodity less expensive for foreign-currency buyers. Attacks on vessels in the Middle East continued to support crude prices, despite expectations of a weekly decline.