Palm ends the year lower after Dalian's fall

The price of palm oil in Malaysia fell Tuesday, reversing previous gains. This was due to the market following the softening prices of other vegetable oils at the Dalian Market.

The benchmark contract for palm oil delivery in January on the Bursa Derivatives exchange lost 5 ringgit or 0.11% to 4,508 Ringgit ($1,067.23) per metric ton.

Dalian's palm oil contract, which is the most active contract, fell by 0.81% while soyoil prices dropped by 0.22%. Chicago Board of Trade soyoil prices were up by 0.12%.

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

In the face of uncertain palm and soy oil exports, the Malaysian Palm Oil Council stated on Tuesday that crude palm oils prices will remain above 4,400 Ringgit ($1,042) a metric ton in 2026.

Intertek Testing Services reported that exports of palm oil products from Malaysia for the period October 1-20 were up 3.4% over the same period in September. AmSpec Agri Malaysia, an independent inspection company, said they had increased by 2.5%.

On Monday, Chicago Board of Trade soy futures reached their highest level in over a month due to renewed optimism about U.S. China trade talks.

The palm ringgit, the currency of trade for the company, has weakened by 0.05% against dollar. The commodity would be less expensive to buyers who hold foreign currencies if the ringgit was weaker.

The oil prices remained stable on Tuesday, after falling in the previous session, as fears about an oversupply, risks to the demand and the trade dispute between China and the U.S., the two largest oil consumers around the world, weighed on the markets.

Palm oil is less appealing as a biodiesel feedstock due to the weaker crude oil futures.

(source: Reuters)