Palm posts weekly drop, weighed down by rival oils

Malaysian palm oil futures experienced a weekly decline, despite a slight increase on Friday, due to reduced demand from India, the world's largest buyer, and losses in Dalian vegetable oils. The benchmark palm oil contract for April delivery on the Bursa Malaysia Derivatives Exchange rose slightly, but reached its lowest level in over three months during the session. Factors contributing to the decline include lower imports by India, shifting competition towards cheaper alternatives like soyoil and rapeseed oil, and a temporary halt on subsidies for palm oil biodiesel and re-planting programs in Indonesia.

Malaysian palm oil futures posted a weekly drop despite ending higher on Friday amid sluggish demand from top buyer India and losses in Dalian vegetable oils. The benchmark palm oil contract FCPO1! for April delivery on the Bursa Malaysia Derivatives Exchange gained 7 ringgit, or 0.17%, to 4,193 ringgit a metric ton at closing. Malaysian palm oil futures settled higher on Friday on bargain buying as prices have reasonably corrected from recent highs and premium over soybean oil has erased, said Anilkumar Bagani, commodity research head at vegetable oil brokerage Sunvin Group. The contract fell to its lowest in more than three months earlier in the session. It lost 4.51% this week. “Lower imports by top buyer India are a major concern for the palm oil market, especially as competition intensifies from cheaper soyoil and rapeseed oil, which are attracting increasing demand,” a Mumbai-based dealer with a global trade house said. Palm oil imports by India, the world’s biggest importer ...