JAKARTA: Malaysian palm oil futures fell for three consecutive sessions on Monday, ending at a 21-week closing low as a stronger ringgit and weak demand weighed down on the contract.
The benchmark palm oil contract for February delivery on the Bursa Malaysia Derivatives Exchange lost 14 ringgit, or 0.34%, to 4,055 ringgit ($979.71) a metric ton at closing, its lowest closing since July 1.
The contract ended lower due to pressure from a stronger ringgit, the currency of trade, while export demand was anaemic amid large October-end stocks, said Paramalingam Supramaniam, director at Selangor-based brokerage Pelindung Bestari.
Exports of Malaysian palm oil products in November 1-20 seen falling between 14.1% and 20.5%, according to independent inspection company AmSpec Agri and cargo surveyor Intertek Testing Services.
However, production was expected to dip slowly in December until the first quarter of 2026.
“It is certainly delayed, but very soon the impact of the monsoon will be more pronounced once major producing states start getting more rain falls,” Supramaniam said.
More than 11,000 people in seven Malaysian states have been affected by flooding caused by torrential rain, the national disaster agency said.
Dalian’s most-active soyoil contract fell 0.24%, while its palm oil contract shed 1.18%. Soyoil prices on the Chicago Board of Trade were up 0.32%.
Palm oil tracks price movements of rival edible oils, as it competes for a share of the global vegetable oils market.
The ringgit palm’s currency of trade, strengthened 0.17% against the dollar, making the commodity more expensive for buyers holding foreign currencies.
Palm oil may fall further into a range of 3,991 ringgit to 4,034 ringgit per ton, driven by a wave (5), said Reuters technical analyst Wang Tao.
American Dollar Exchange Rate