Palm oil logs worst day in two weeks as rival oils drop

SINGAPORE: Malaysian palm oil futures ended lower for a second consecutive session to log its worst day in two weeks as rival edible oils fell, with oversupply worries denting investor sentiment on Tuesday.

The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange slid 141 ringgit, or 3.98%, to 3,405 ringgit ($767.76) a tonne, its largest daily drop since May 16.

The benchmark contract fell as low as 4.31% earlier in the session. Dalian’s most-active soyoil contract fell 2.0%, while its palm oil contract eased 2.3%. Soyoil prices on the Chicago Board of Trade dropped 1.3%.

Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.