Palm oil futures fell on Friday

Palm oil prices have fallen amid a weaker oil market, says David Ng, a Kuala Lumpur-based trader at Iceberg X. He says the recent reduction in export forecasts has also weighed on prices. Ng sees support at 4,400 ringgit per tonne and resistance at 4,580 ringgit per tonne.

Malaysian palm oil futures fell on Friday, recording a second consecutive weekly decline, as weaker crude and Chicago soybean oil prices weighed on prices.

The benchmark FCPO1 palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange fell 44 ringgit, or 0.98%, to 4,451 ringgit (US$1,126.84) per metric tonne, its lowest closing price since March 10. The contract fell 1.92% for the week.

The market declined amid weaker crude and soybean oil prices during the Asian trading session, said David Ng, a trader at Kuala Lumpur-based trading firm Iceberg X Sdn Bhd.

The most active soybean oil contract in Dalian rose 0.46%, while the palm oil contract added 1.26%. Soybean oil prices on the Chicago Mercantile Exchange fell 0.54%.

Palm oil prices follow the price movements of competing edible oils as it fights for share in the global vegetable oil market.

Oil prices fell amid renewed hopes that the war in the Middle East may be nearing an end, amid a 10-day truce between Lebanon and Israel and signals that the US and Iran may hold further talks over the weekend.

Weaker oil futures are making palm oil a less attractive biodiesel feedstock option.

The Malaysian ringgit (USDMYR) strengthened 0.05% against the dollar, making the commodity slightly more expensive for buyers holding foreign currency.

According to the Malaysian Palm Oil Council, palm oil-based biodiesel consumption in Malaysia will increase by more than 300,000 metric tons annually as the country joins leading producer Indonesia in increasing blending requirements to reduce dependence on energy imports.

Tags: palm oil, prices