JAKARTA: Malaysian palm oil futures extended losses to a third day on Thursday, tracking a slide in oil prices and rival vegetable oils, with export data also weighing down sentiment.
The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange was down 75 ringgit, or 1.62 percent at 4,558 ringgit (USD1,107.65) per metric ton at the close. Dalian’s most-active soyoil contract dropped 0.37 percent while its palm oil contract declined 1.81 percent. Soyoil prices on the Chicago Board of Trade fell 0.38 percent.
Palm oil tracks the price movements of rival edible oils, as it competes for a share of the global vegetable oils market.
Exports of Malaysian palm oil products for June 1 to 25 rose 11.1 percent, according to independent inspection company AmSpec Agri Malaysia, while according to cargo surveyor Intertek Testing Services it rose 10.6 percent.
Oil prices fell on Thursday to levels last seen before the start of the Iran war as expectations of rising supply from the Middle East outweighed demand concerns.
Palm is also often influenced by crude oil prices, with weaker crude oil futures making palm a less attractive option for biodiesel feedstock.
Meanwhile, Indonesia has issued a regulation to implement its B50 biodiesel mandate starting from July 1, with a three-month transition period for retailers to clear their existing stocks, a senior energy ministry official said on Thursday.
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