Palm oil to end with a nearly 9% decline by 2025

Malaysian palm futures ended lower on Wednesday, as participants in the market booked profits before?the New Year holidays. The volatile year was rounded off with a 9% loss due to geopolitical uncertainty and tariff concerns. The benchmark March palm oil contract on the Bursa Derivatives exchange lost 20 ringgit or 0.49% to 4,050 Ringgit ($998.27).

Futures were trading lower on today's profit-taking, said

Anilkumar Bagani, research ?head at Mumbai's Sunvin Group.

The futures market gained almost 20% last year.

The Farm Trade, a Kuala Lumpur based consultancy and trading firm, said that the palm market was volatile this year. "Global macro scenarios, tariffs, and other uncertainties impacted the price of the fruit, which moved from a high of 4,650 ringgit to a low of 3,725," Sandeep Singh stated.

He said that 2026 may still be volatile due to the changing global economic scenario, currency fluctuations, and crude oil price. Dalian's palm oil contract dropped 0.19%, but the most active soyoil contract rose by 0.15%. Chicago Board of Trade soyoil prices were down by 0.18%.

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

Malaysian palm oil exports in December

The 5.2% decrease in the number of people who are able to work is a significant drop.

AmSpec Agri Malaysia, an independent inspection company, said that it was a better month than November. Intertek Testing Services is a cargo surveyor and says the same.

The price of crude palm oil fell by 5.8%. According to a Trade Ministry Regulation, Indonesia has set its crude palm olefins reference price for January at $915.64 a metric ton. This is down from $926.14 per ton in December.

The oil price? edged lower on Wednesday, and is set to

Falling more than 15%

Oversupply concerns will grow in 2025.

Palm oil is less appealing as a biodiesel source due to weaker crude oil futures. The ringgit (palm's trade currency) has fallen by 0.27% in relation to the dollar. This makes the commodity more affordable for buyers who hold foreign currencies.

(source: Reuters)