JAKARTA: Malaysian palm oil futures closed down on Monday, tracking weakness in rival soyoil in the Chicago market, while escalating U.S.-China trade tensions despite a temporary suspension of tariffs on other countries also weighed on sentiment.
The benchmark June palm oil contract on the Bursa Malaysia Derivatives Exchange lost 42 ringgit, or 1%, to 4,170 ringgit ($945.58) a metric ton by at the close.
“Following the 90-day tariff suspension by the U.S., concerns over broader economic headwinds and lingering uncertainties have continued to cap any meaningful upside,” said Darren Lim, a commodities strategist at Singapore-based brokerage Phillip Nova.
The downward pressure seen this morning suggests that traders remain unconvinced about the long-term impact of the suspension, he added.
Dalian’s most-active soyoil contract added 0.6%, while its palm oil contract lost 0.21%. Soyoil prices on the Chicago Board of Trade (CBOT) fell 0.34%.
Palm oil tracks price movements of rival edible oils as it competes for a share of the global vegetable oils market.
India’s palm oil imports in March rose about 14% from the previous month to 424,599 tons, a trade body said on Friday.
Independent inspection company AmSpec Agri Malaysia said exports of Malaysian palm oil products for April 1-10 rose 52.8% to 301,113 tons, while according to cargo surveyor Intertek Testing Services it rose 29.3% to 323,160 tons.
Palm oil books second weekly losses
Oil prices edged higher on Monday after U.S. exclusions on some tariffs and Chinese data showing a sharp rebound in crude imports in March, but gains were capped by concerns that the trade war between the United States and China could weaken global economic growth and dent fuel demand.
stronger crude oil futures make palm a slighltly more attractive option for biodiesel feedstock.
The ringgit, palm’s currency of trade, strengthened 0.23% against the U.S. dollar, making the commodity more expensive for buyers holding foreign currencies.
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