KUALA LUMPUR: Malaysian palm oil futures slipped for a second consecutive session on Tuesday, as declines in Dalian palm olein due to profit-taking pressured the market.
The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange slid 22 ringgit, or 0.49 percent, to 4,470 ringgit (USD 1,063.02) a metric ton at the close.
Crude palm oil futures extended falls amid pressure from Dalian palm olein, a Kuala Lumpur-based trader said. Dalian’s most-active soyoil contract fell 0.19 percent, while its palm oil contract shed 1.19 percent. Soyoil prices on the Chicago Board of Trade were down 0.64 percent.
Palm oil tracks price movements of rival edible oils, as it competes for a share of the global vegetable oils market.
Oil prices fell after surging nearly 2 percent in the previous session as traders monitor developments surrounding the war in Ukraine and potential disruption to Russian fuel supplies.
Weaker crude oil futures make palm a less attractive option for biodiesel feedstock. Cargo surveyors estimated that exports of Malaysian palm oil products during August 1-25 rose between 10.9 percent and 16.4 percent from a month earlier.
The ringgit, palm’s currency of trade, weakened 0.21 percent against the dollar, making the commodity slightly cheaper for buyers holding foreign currencies.
Indonesia urged the European Union to scrap countervailing duties on imports of biodiesel immediately, after the World Trade Organization backed several of Jakarta’s main claims in a complaint to the trade body.
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