JAKARTA: Malaysian palm oil futures fell for a second session on Thursday, weighed by softer rival oils and a firmer ringgit. The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange dropped 1.62% to 3,714 ringgit ($843.71) a tonne by midday.

On Wednesday, it fell 2.91%. “Bursa Malaysia Derivatives CPO prices following weak external markets like Dalian Commodity Exchange and crude oil,” a Kuala Lumpur-based trader said, adding a firmer ringgit also put pressure on the price.

Soyoil prices on the Chicago Board of Trade fell 0.44%. Dalian’s most-active soyoil contract fell 0.73%, while its palm oil contract was down 2.49%.

Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market. Meanwhile, oil prices retreated on Thursday with investors still showing lingering concerns over a possible US recession and weaker oil demand.

A weaker crude oil makes palm oil less competitive for biodiesel.

Palm rise to one-week closing high on tight supply outlook

Malaysian ringgit, the contract currency of trade, rose 0.18% against the dollar and made palm oil more expensive for foreign currency holders.

Meanwhile, exports of Malaysian palm oil products for April 1-10 fell between 16.2% and 35.6% from a month earlier, cargo surveyor data showed earlier this week.

European Union palm oil imports for the 2022/23 season stood at 3.06 million tonnes by April 9 versus 3.98 million tonnes a year ago.

Palm oil may test support of 3,671-3,683 ringgit per tonne, a break below which could open the way towards the 3,577-3,613 ringgit range, said Reuters technical analyst Wang Tao.