KUALA LUMPUR: Malaysian palm oil futures extended losses on Monday for the sixth straight session, as weakness in soyoil and crude oil and a stronger ringgit weighed on the market, with U.S. tariff concerns also fuelling the downturn.
The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange slid 64 ringgit, or 1.61%, to 3,911 ringgit ($895.58) a metric ton at the close.
Crude palm oil futures eased on weaker soybean oil and crude oil, reflecting the negative global sentiment stemming from the U.S tariff policies, said David Ng, a proprietary trader at Kuala Lumpur-based trading firm Iceberg X Sdn Bhd.
“A stronger ringgit is also seen as a weighing factor on prices.”
Dalian’s most-active soyoil contract fell 0.13%, while its palm oil contract shed 1.18%. Soyoil prices on the Chicago Board of Trade rose 0.6%.
Palm oil tracks the price movements of rival edible oils as it competes for a share of the global vegetable oils market.
Palm falls for fourth session as higher production weighs
Cargo surveyors estimated exports of Malaysian palm oil products during April 1-20 rose between 11.9% and 18.5%, compared with the same period a month ago.
Oil prices fell more than 2% on signs of progress in talks between the U.S. and Iran while investors remained concerned about economic headwinds from tariffs which could curb demand for fuel.
Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
The ringgit, palm’s currency of trade, strengthened 0.98% against the dollar, making the commodity more expensive for buyers holding foreign currencies.
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