Palm oil ends the week lower due to weak crude oil.

Malaysian palm futures closed lower on Friday after a two-week rally. Weaker crude oil prices pushed the market.

At the close, the benchmark palm oil contract on Bursa Derivatives Exchange for January delivery fell 6 ringgit or 0.13% to 4,514 Ringgit ($1,068.66). The contract dropped 0.68% in the past week.

David Ng said that the market fell as low crude oil prices weighed on market sentiment. He is a proprietary trader with Kuala Lumpur based trading firm Iceberg X Sdn. Bhd.

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

The oil prices fell, headed for a loss of about 3% per week after the IEA predicted a growing surplus and U.S. president Donald Trump and Russian president Vladimir Putin agreed to meet once again to discuss Ukraine.

Dalian's palm oil contract, which is the most active contract, fell 0.19%. Chicago Board of Trade soyoil prices were down by 0.49%.

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

The palm ringgit's trade currency strengthened by 0.02% against dollars, making it slightly more expensive to buyers who hold foreign currencies.

Edi Wibowo, an official from the energy ministry, said that Indonesia, which is the largest palm oil producer in the world, was considering a plan requiring international flights departing from Jakarta and Bali, to use a sustainable aviation fuel blend of 1% starting 2026.

The government of India announced that it has increased the base import price for gold, silver, and all vegetable oil. ($1 = 4.2240 ringgit)

(source: Reuters)