Palm slips as Dalian palm olein weighs

KUALA LUMPUR: Malaysian palm oil futures retreated on Tuesday, reversing the previous session’s gains, as softer Dalian palm olein dragged on prices.

The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange slid 33 ringgit, or 0.73%, to 4,483 ringgit ($1,140.13) a metric ton at the close. The contract rose 0.24% in the previous session.

The market was weighed down by selling pressure in Dalian palm olein during the Asian trading session, a Kuala Lumpur-based trader said.

Dalian’s most-active soyoil contract rose 0.16%, while its palm oil contract shed 1.35%. Soyoil prices on the Chicago Board of Trade were up 0.81%.

Palm oil tracks the price movements of rival edible oils, as it competes for a share of the global vegetable oils market.

Oil prices rose 2% as hopes for a deal to end the U.S.-Israeli war on Iran faded, with stark differences between Tehran and Washington on a peace proposal bringing supply concerns again to the fore.

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

Malaysia’s palm oil inventories rose in April for the first time in four months as exports fell amid a surge in production and higher imports, data from the Malaysian Palm Oil Board showed.

Cargo surveyor Intertek Testing Services estimated that exports of Malaysian palm oil products for May 1-10 rose 8.5% from a month earlier, while independent inspection company AmSpec Agri Malaysia estimated that exports declined 10.8%.

The ringgit palm’s currency of trade, weakened 0.31% against the dollar, making the commodity slightly cheaper for buyers holding foreign currencies.