Malaysian palm oil futures fell on Friday, posting a third straight weekly decline, as traders booked profits following bullish analyst outlook for next year, while no signs of progress in talks over agricultural exports between the U.S. and China also dampened sentiment.

The benchmark palm oil contract FCPO1! for December delivery on the Bursa Malaysia Derivatives Exchange eased 43 ringgit, or 0.97%, to 4,396 ringgit ($1,041.95) a metric ton at the close. The contract fell 0.66% this week.

The palm oil market slipped in the afternoon session as participants interpreted analysts’ bullish outlook for next year as a bearish signal for current prices, a Kuala Lumpur-based trader said.

India’s edible oil imports in 2025/26 are projected to rise 4.6% to a record 17.1 million metric tons, driven by higher palm oil purchases by the world’s largest vegetable oil buyer, industry analyst Dorab Mistry said at the Globoil Conference in India.

Meanwhile, leading industry analyst Thomas Mielke predicted that global palm oil and soyoil prices are expected to rise by $100 to $150 per metric ton between January and June 2026 due to tightening supplies.

“The absence of a final decision between the United States and China on soybean oil trade deal also kept buyers on the sidelines,” the trader added.

Dalian’s most-active soyoil contract (DBYcv1) shed 0.22%, while its palm oil contract CPO1! added 0.24%. Soyoil prices on the Chicago Board of Trade ZL1! were down 0.28%.

Palm oil tracks the price movements of rival edible oils, as it competes for a share of the global vegetable oils market.

Oil prices edged up, on track for a more than 4% weekly gain, as Ukraine’s attacks on Russia’s energy infrastructure prompted Moscow to curb fuel exports. O/R

Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.

The ringgit USDMYR, palm’s currency of trade, weakened 0.14% against the dollar, making the commodity cheaper for buyers holding foreign currencies.
Source: Reuters