Palm tumbles, posts steepest weekly fall in nearly two years

KUALA LUMPUR, Nov 6 (Reuters) - Malaysian palm oil futures tumbled on Friday, posting their steepest weekly decline since mid-December 2024, as weaker soyoil prices pressured the market.

The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange slid 119 ringgit, or 2.72%, to 4,258 ringgit ($1,049.54) a metric ton, the lowest closing price since March 5. The contract fell 9.04% this week and logged a second consecutive weekly loss.

The market traded lower, pressured by soybean oil weakness, said David Ng, a proprietary trader at Kuala Lumpur-based trading firm Iceberg X Sdn Bhd.

Dalian's most-active soyoil contract fell 1.41%, while its palm oil contract shed 2.41%. Soyoil prices on the Chicago Board of Trade were down 0.53%.

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

Oil prices were set for a sharp weekly fall after the midterm election losses of US President Donald Trump's Republican Party raised hopes of a de-escalation in the US-Israeli war on Iran, though attacks on vessels in the Middle East continue to provide a floor for the market. O/R

Weaker crude oil futures make palm oil less attractive as biodiesel feedstock.

The ringgit , palm's currency of trade, weakened 0.3% against the dollar, making the commodity slightly cheaper for buyers holding foreign currencies.

($1 = 4.0570 ringgit)