12.12.202504:28:38UTC+00Palm Oil Set to Post First Weekly Losses in Three

Malaysian palm oil futures dipped to approximately MYR 4,050 per tonne on Friday, following a subdued previous session. This movement marks the first weekly decline in three weeks, with a drop of around 2.6%. The decrease mirrored the weakness observed in competing edible oils within the Dalian market. Adding to this, a stronger ringgit adversely affected sentiment as it rendered exports less competitive. Traders exercised caution, noting reports from cargo surveyors indicating that shipments between December 1 and 10 had decreased by 10.3% to 15% compared to the same timeframe in November. Additionally, end-of-November inventories climbed by 13% to reach 2.84 million tonnes, the highest level in six and a half years. This increase is attributed to robust full-year production, which is poised to surpass 20 million tonnes for the first time, driven by improved labor availability, more efficient harvesting, and output from maturing plantations. Nevertheless, the losses were somewhat mitigated by data from the industry regulator revealing a 5.3% decline in November's production to 1.94 million tonnes. There are also expectations for increased seasonal demand in anticipation of the upcoming Lunar New Year and Ramadan.