Palm prices fall on firmer Ringgit and weaker Dalian Market

Malaysian palm futures fell for a third time on Thursday as a'slightly stronger ringgit' added to losses in the Dalian market and the absence of positive signals from an important'market conference. The benchmark April palm oil contract on the Bursa Derivatives exchange fell 24 ringgit (0.59%) to 4,037 Ringgit ($1,035.39) per metric ton. The firmer ringgit is continuing to impact export competitiveness, and dampen buying interest. Dalian palm oil was also lower, which added pressure to the wider?vegetable oil complex", said Kang Wei Cheang from StoneX. He said traders are also digesting the mixed discussions at the Price Outlook Conference held in Kuala Lumpur. No new bullish catalysts have emerged in the short term. The ringgit, the palm oil's currency of trade, gained 0.31% in value against a dollar, increasing the price for buyers with foreign currencies. Dalian's palm oil contract dropped 1.5%, while the most active soyoil contract declined 0.22%. Chicago Board of Trade soyoil prices rose by 0.81%.

As palm oil competes to gain a market share on the global vegetable oil market, it tracks the price movement of competing edible oils. Malaysia has raised its crude palm oil reference price for March, while maintaining the export duty of 9%, according to a circular posted on the Malaysian Palm Oil Board website. Analysts said that Indonesia's decision to pause the expansion of biodiesel and the expectation of increased production in the upcoming?months will likely pressure palm oil prices. However, analysts noted that a strong demand and a slowing in growth could limit any downside. According to Julian McGill MD, founder of Glenauk Economics, Indonesia's palm seed sales in 2025 indicated that?planting continued despite disruptions caused by land seizures.

(source: Reuters)