Palm oil notches marginal weekly gains on Malaysian production decline

Malaysian palm oil futures reversed losses on Friday to end higher, and booked marginal weekly gains after data from the Malaysian Palm Oil Association showed a decline in production.

The benchmark palm oil contract for April delivery on the Bursa Malaysia Derivatives Exchange closed up 0.55% to 4,213 ringgit ($962.97) a metric ton.

For the week, the contract rose 0.55%, after falling about 4.6% in the previous week.

“The MPOA (Jan) 1 to 20 production data showed a 13% decline, supporting prices,” a Kuala Lumpur-based trader said.

Market participants may trade cautiously ahead of presentation at Globoil sugar and bioenergy conference in Bangkok, the trader said.

Dalian’s most-active soyoil contract lost 0.83%, while its palm oil contract slipped 0.67%. Soyoil on the Chicago Board of Trade was down 0.82%.

Palm oil tracks price movements in rival edible oils as it competes for a share of the global vegetable oils market.

Indonesia’s November palm oil stocks rose 3.2% from the previous month as slowing exports offset a decline in production, data from Indonesian palm oil association GAPKI showed.

Malaysian palm oil is likely to trade around 4,000 ringgit per ton in 2025, except for a brief rise up to 4,800 ringgit in February, amid stiff competition from soyoil, industry analyst Dorab Mistry said.

A Reuters poll showed Malaysian CPO futures are expected to average higher in 2025, as top producer Indonesia boosts palm oil-based biodiesel consumption, although competition from cheaper rivals is expected to limit the upside.

Exports of Malaysian palm oil products for Jan. 1-20 are estimated to have fallen between 18.2% and 23%, according to cargo surveyors Intertek Testing Services and independent inspection company AmSpec Agri Malaysia.

Tags: benchmark contract, soyoil, Malaysia, palm oil, futures