Palm oil fell on Friday due to weakness in the soyoil market

Malaysian palm oil futures closed lower on Friday as weakness in the soyoil market outweighed stronger export demand. The benchmark October contract on the Bursa Malaysia Derivatives Exchange fell by 41 ringgit, or 0.88%, to 4,642 ringgit ($1,136.91) per metric ton.

The contract declined 1.69% for the week, ending a three-week rally. However, it still posted a 2.11% gain for July, marking its second consecutive monthly increase. According to traders, the late-week decline was mainly driven by weaker Asian soyoil prices.

The market received support from stronger exports. Cargo surveyors estimated that Malaysian palm oil exports rose by 12.1%–19.5% in July compared with June, partially offsetting pressure from the broader vegetable oil market.

Additional pressure came from lower crude oil prices, which reduced palm oil’s attractiveness as a biodiesel feedstock. Meanwhile, a weaker Malaysian ringgit against the U.S. dollar made the country’s palm oil slightly more competitive for overseas buyers.

Indonesia also lowered its August reference price for crude palm oil (CPO) to $996.52 per metric ton, down from $1,000.90 in July. The move reflects the overall softening of the global palm oil market and could continue to influence prices in the coming weeks.

Tags: prices, palm oil