Palm drops on Dalian's weakening, and is set to fall for a second week.

Malaysian palm oil futures fell for the fourth consecutive session on Friday, mirroring rivals in Dalian, and were headed?for their second consecutive weekly loss.

By midday, the benchmark palm oil contract for April delivery at the Bursa Derivatives exchange had fallen 29 ringgit (0.72%) to 4,008 Ringgit ($1,028.75). The price has fallen 3.51% in just one week.

A Kuala Lumpur based trader said that the futures were tracking Dalian’s weak performance as well as soft physical demand.

Dalian's most-active palm oil contract dropped 1.54%, while the soyoil contract declined 0.86%. Chicago Board of Trade soyoil prices fell 0.33%.

As it competes to gain a share in the global vegetable oil market, palm oil monitors price changes of competing edible oils.

Chinese markets will be closed from February 16-23 for Lunar New Year.

A circular posted on the Malaysian Palm Oil Board's website revealed that Malaysia raised its crude palm oil price reference for March, maintaining the export duty of 9%.

Analysts said that Indonesia's decision to stop biodiesel expansion and the expectation of higher production over the next few months will likely pressure palm oil prices. However, strong demand?and slowing overall growth could limit the downside.

According to Julian McGill MD, founder of Glenauk Economics, Indonesia's palm oil?seeds sales in 2025 indicated that planting continued despite disruptions due to land seizures by the government's forestry task force.

The palm ringgit's currency has strengthened by 0.1% versus the dollar. This makes?the commodity? more expensive for buyers holding foreign currencies.

According to Wang Tao, a technical analyst, palm oil could retest the support level of 4,018 Ringgit per ton after a weak rebound.

(source: Reuters)