Palm oil prices witnessed a decline due to fears of weak Malaysian exports and increased competition from soybean oil, the main substitute for it.
Data from Intertek Testing Services showed Foreign exports from Malaysia declined by 8.3% during the first 20 days of December compared to the previous month.
Exports to India, the largest importer, also decreased by approximately 22%. %. This decline is due to lower demand during the winter, as palm oil freezes at low temperatures, according to Bloomberg.
Despite this, palm oil continues to In trading at higher prices than soybean oil, which is rare in the markets.
Analyst Sathya Varka from Fast Markets Palm Oil Analytics said: In Singapore, weak Malaysian exports and declining palm oil competitiveness are negatively impacting market sentiment. He added that some traders are taking profits and liquidating their positions before the Christmas holidays and the end of the year.
