KUALA LUMPUR: Malaysian palm oil futures fell for a second consecutive session on Tuesday, as a stronger ringgit and weaker rival vegetable oils weighed on sentiment.
The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange slid 25 ringgit, or 0.63%, to 3,940 ringgit ($910.98) a metric ton at the close.
Palm has continued to decline as a firmer ringgit invited heavy selling activities in the market, a Kuala Lumpur-based trader said. The ringgit, palm’s currency of trade, strengthened 0.8% against the dollar, making the commodity more expensive for buyers holding foreign currencies.
Dalian’s most-active soyoil contract fell 0.84%, while its palm oil contract shed 1.72%. Soyoil prices on the Chicago Board of Trade were down 1.13%.
Palm oil tracks price movements of rival edible oils, as it competes for a share of the global vegetable oils market. Crude oil prices fell as investors lowered their demand growth expectations due to the trade war between the United States and China, the world’s two biggest economies. Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
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