KUALA LUMPUR: Malaysian palm oil futures closed down on Monday, reversing the previous session’s gains, as softer soyoil prices and weaker export data pressured the market.
The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange slid 89 ringgit, or 2.06%, to 4,226 ringgit ($998.35) a metric ton at the close.
Crude palm oil futures traded lower due to weaker soybean oil prices and also declining exports, said David Ng, a proprietary trader at Kuala Lumpur-based trading firm Iceberg X Sdn Bhd.
Dalian’s most-active soyoil contract fell 0.47%, while its palm oil contract climbed 0.16%. Soyoil prices on the Chicago Board of Trade were down 0.79%.
Palm oil tracks price movements of rival edible oils, as it competes for a share of the global vegetable oils market.
Palm oil makes more than 3% weekly gain for highest close in 14 weeks
Cargo surveyors estimated that exports of Malaysian palm oil products for July 1-20 fell between 3.5% and 7.3% from a month earlier.
The ringgit, palm’s currency of trade, strengthened 0.26% against the dollar, making the commodity more expensive for buyers holding foreign currencies.
Oil prices dipped slightly, with the latest European sanctions on Russian oil expected to have minimal impact on supplies while U.S. tariffs ensure demand concerns remain.
Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
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