PALMOILMAGAZINE, KUALA LUMPUR – Futures prices for crude palm oil (CPO) on the Malaysia Exchange weakened on Thursday, January 2, as selling pressure emerged following an initial rally driven by Dalian vegetable oil, a key competitor.
According to Reuters, the benchmark CPO contract FCPOc3 for March 2025 delivery on the Malaysia Derivatives Exchange fell by 1.33% to RM 4,389 (approximately US$ 980.56) per metric ton by midday. Earlier, prices had risen by as much as 1.8% during early trading.
A Kuala Lumpur-based trader noted that the initial gains were supported by positive movements in Dalian soybean oil. “However, the lack of strong follow-up news or sufficient support to maintain the upward momentum triggered selling,” the trader explained.
Also Read:
In other vegetable oil markets, Dalian soybean oil contracts (DBYcv1) gained only 1.56% after trimming earlier gains, while Dalian palm oil contracts (DCPcv1) turned negative with a 0.58% drop. Meanwhile, soybean oil trading on the Chicago Board of Trade (BOcv1) was closed due to the New Year holiday.
Palm oil prices often move in tandem with other vegetable oils as they compete for a share of the global market.
According to Indonesia’s Ministry of Trade, the Reference Price (HR) for crude palm oil (CPO), used to set export duties (BK) and tariffs by the Palm Oil Plantation Fund Management Agency (BPDP-KS), has been set at US$ 1,059.54 per metric ton for January 1–31, 2025. This marks a decrease of US$ 12.13 or 1.13% compared to December 2024’s HR of US$ 1,071.67 per metric ton.
Additionally, Malaysia’s palm oil product exports in December declined. AmSpec Agri Malaysia reported a 2.5% drop, while Intertek Testing Services noted a 7.8% decrease.
On the currency front, the Malaysian Ringgit (MYR) weakened by 0.18% against the US dollar on Thursday, making palm oil more affordable for international buyers paying in foreign currencies. (P2)
