KUALA LUMPUR: Malaysian palm oil futures fell on Tuesday, closing at their lowest in more than two months, as falling exports in the world’s second-biggest producer and weak Chicago soyoil prices weighed.

The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange closed down 101 ringgit, or 2.58%, to 3,814 ringgit ($799.58), the lowest close since Feb. 22.

Weak export numbers as well as a freefall in soyoil prices on the Chicago Board of Trade have put pressure on Malaysian palm oil futures to regain market share in the physical market, Mitesh Saiya, trading manager at Mumbai-based trading firm Kantilal Laxmichand & Co said.

Independent inspection company AmSpec Agri said exports of Malaysian palm oil products for April fell 11.5% from March, while cargo surveyor Intertek Testing Services said exports fell 9%.

Dalian’s most-active soyoil contract lost 0.13%, while its palm oil contract slipped 1.08%. Soyoil prices on the Chicago Board of Trade were down 2.86%.

Palm oil extends gains for 2nd session but higher output estimates cap rise

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

Meanwhile, oil steadied on Tuesday after the previous day’s drop as Israel-Hamas talks offered hopes of a ceasefire even as Red Sea attacks continued, while investors awaited signals on U.S. interest rates ahead of a key meeting on Wednesday.

Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.

The Malaysian ringgit, palm’s currency of trade, weakened 0.1% against the dollar, making the commodity less expensive for buyers holding the foreign currency.

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