InfoSAWIT, JAKARTA — Malaysian palm oil futures edged lower on Thursday, pressured by expectations of rising output and a weaker performance in Dalian’s palm olein market.

The benchmark January palm oil contract on the Bursa Malaysia Derivatives Exchange fell 4 ringgit, or 0.1%, to 4,120 ringgit (US$975.38) per metric ton by the midday break.

“The market is trading lower amid concerns over higher Malaysian production and softer Dalian palm olein prices,” said Anilkumar Bagani, research head at Mumbai-based vegetable oil broker Sunvin Group.

He added that Malaysia’s crude palm oil (CPO) output could exceed 20 million tons this year, while Indonesia — the world’s largest producer — has already recorded double-digit growth.

“There is a risk that Malaysia’s production may cross 20 million tons in 2025, while Indonesia’s output has risen sharply,” Bagani said.

“Additionally, weaker crude oil prices and a stronger ringgit are also weighing on sentiment.”

Trade and industry officials told Reuters that Malaysia’s crude palm oil output is on track to surpass 20 million tons for the first time, supported by favorable weather, better labor availability, and new high-yield plantations.

In Indonesia, production from January to September reached more than 43 million tons, an 11% increase year-on-year, according to Eddy Martono, chairman of the Indonesian Palm Oil Association (GAPKI).

On China’s Dalian Commodity Exchange, the most-active soyoil contract (DBYcv1) rose 0.31%, while palm oil futures slipped 0.14%. Meanwhile, soyoil prices on the Chicago Board of Trade gained 0.3%. (T2)