Malaysian palm oil futures closed lower on Thursday

Malaysian palm oil futures closed lower for a third straight session on Thursday, as a slight strengthening of the ringgit exacerbated losses in the Dalian market and a lack of positive cues from a key market conference.

An overnight decline in rival soybean oil prices and lingering demand concerns in the coming weeks likely weighed on sentiment, Kenanga Futures said in a note. However, the analysts added, potential bargain hunting and expectations of lower production could mitigate further declines.

The benchmark FCPO1 palm oil contract for April delivery on the Bursa Malaysia Derivatives Exchange fell 24 ringgit, or 0.59%, to 4,037 ringgit (US$1,035.39) per metric tonne.

“The strengthening ringgit continues to weigh on export competitiveness and dampen buying interest. Meanwhile, Dalian palm olein oil prices have declined, adding to pressure on the entire vegetable oils industry,” said Kang Wei Cheang, an analyst at Singapore-based StoneX, an agricultural commodities firm.

Traders are also analyzing the conflicting opinions expressed at a price forecasting conference in Kuala Lumpur, and no new drivers are expected in the near term, he said.

The ringgit strengthened 0.31% against the dollar, making the commodity more expensive for buyers holding foreign currency.

The most actively traded Dalian soybean oil contract fell 0.22%, while the palm oil contract fell 1.5%. Soybean oil prices on the Chicago Mercantile Exchange rose 0.81%.

Palm oil prices are tracking those of competing edible oils as it competes for share in the global vegetable oil market.

Meanwhile, Malaysia raised its March reference price for crude palm oil while maintaining a 9% export duty, according to a circular published on the Malaysian Palm Oil Council’s website.

Analysts note that Indonesia’s decision to suspend biodiesel production expansion and expectations of increased production in the coming months will likely put pressure on palm oil prices, although strong demand and slowing overall production growth could limit the decline.

According to Julian McGill, MD, founder of consulting firm Glenauk Economics, Indonesia’s oil palm seed sales in 2025 indicate that plantings remained robust despite disruptions caused by land grabs by the government’s forestry task force.

Tags: prices, palm oil