Palm oil prices fell in Malaysia on Monday
Malaysian palm oil futures declined on Monday, August 24, snapping a five-session winning streak. The November contract on Bursa Malaysia Derivatives fell 0.54% by the midday break to MYR 4,991 ($1,236)/t.
The decline came after palm oil prices had climbed to their highest level since December 2024. The market came under pressure from a sharp drop in Chicago soyoil prices amid weaker expectations for U.S. biofuel demand.
The U.S. Environmental Protection Agency signaled that it may extend the deadline for oil refiners to demonstrate compliance with biofuel blending requirements. Against this backdrop, December Chicago soyoil futures lost more than 2% on Friday and extended their decline by another 2.7% on Monday.
Palm oil closely tracks movements in competing vegetable oils as they compete for demand in global food and biofuel markets. Additional pressure came from a decline of more than $1 per barrel in crude oil prices, making palm oil less attractive as a biodiesel feedstock.
Meanwhile, a 0.07% weakening of the Malaysian ringgit somewhat limited the decline by making palm oil cheaper for buyers holding other currencies. Technical analysts see scope for prices to fall further to MYR 4,901–4,919/t after the market failed to break resistance at MYR 5,037/t.
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