Palm oil falls on Dalian and Chicago rivals, lower crude oil
JAKARTA: Malaysian palm oil futures fell for a second straight session on Thursday, tracking weakness in rival oils on the Dalian and Chicago exchanges, while easing crude oil prices also weighed.
Jakarta - Malaysian palm oil futures fell on Thursday, mirroring declines in competing oils on the Dalian and Chicago exchanges, as easing crude oil prices added to the pressure. The benchmark palm oil contract for October delivery on Bursa Malaysia Derivatives Exchange slipped 6 ringgit, or 0.13 percent, to 4,691 ringgit (US$1,148.63) a metric ton early in trading.
Dalian's top traded soyoil contract slipped 0.13 percent, while its palm oil contract declined 0.26 percent. Soyoil prices on the Chicago Board of Trade edged down 0.29 percent. Palm oil prices closely follow those of other edible oils, as they vie for market share. Oil prices dropped more than US$1 on Thursday as analysts reduced global oil demand forecasts for 2026 due to the US-Israeli conflict with Iran, though supply disruptions from the war provided some support.
The Malaysian government reduced its September crude palm oil reference price to preserve the export duty at 10 percent, according to a statement on the Malaysian Palm Oil Board website. Brazil's Supreme Court ruled on Wednesday that the soy moratorium agreement, which prohibited companies from buying soybeans from deforested areas since 2008, is legal, sparing grain traders and processors from compensating farmers who claimed the pact constituted a cartel.
The Malaysian ringgit dropped 0.05 percent against the dollar, making the commodity marginally less expensive for buyers using foreign currencies.
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