Palm falls more than 1% on weaker Chicago soyoil

KUALA LUMPUR: Malaysian palm oil futures slipped more than 1% on Monday, snapping a five-session winning streak, as weaker Chicago soyoil prices weighed on the market amid softer expectations for U.S. biofuel demand.

The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange was down 72 ringgit, or 1.43%, at 4,946 ringgit ($1,224.26) a metric ton at the close.

The palm market retreated from its highest level since December 2024, pressured by sharp losses in Chicago soyoil after the U.S. Environmental Protection Agency signaled plans to extend a September 1 deadline for oil refiners to show compliance with U.S. biofuel blending laws, a Kuala Lumpur-based trader said.

Soyoil prices on the Chicago Board of Trade were down 2.36%. Dalian’s most-active soyoil contract fell 0.35%, while its palm oil contract shed 0.01%.

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

Oil prices slipped more than $1 a barrel as investors took profits after recent gains and awaited details of expected new U.S. sanctions on Iran, which could further disrupt supplies from the Middle East.

Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.

The ringgit, palm’s currency of trade, weakened 0.12% against the dollar, making the commodity slightly cheaper for buyers holding foreign currencies.