Malaysian palm oil futures dropped by about 1% to below MYR 4,500 per tonne on the last trading day of 2024, marking a second consecutive session of losses amid low trading activity before the holidays. Sentiment remained weak due to poor export performance in December, with cargo surveyors reporting a 1.1%-4% decline in Malaysia’s shipments between December 1-25 compared to the same period in November. For December, contracts are set to fall around 10%, reversing gains from previous months as some traders took profits after reaching a two-year high of MYR 5,200 in November. However, prices are still expected to rise by about 21% in 2024, breaking a two-year losing streak. The increase was driven by strong global demand and limited production in key producers like Indonesia and Malaysia, where output has been affected by aging plantations, unpredictable weather, and restricted expansion into new growing areas. Markets will remain closed on Wednesday for the New Year holiday.