Palm falls as weaker Chicago soyoil weighs
KUALA LUMPUR: Malaysian palm oil futures slipped on Monday, snapping a five-session winning streak, weighed down by weaker soyoil prices amid reduced US biofuel demand expectations. The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange was down 27 ringgit, or 0.54%, at 4,991 ringgit ($1,236.01) a metric ton by the midday break. The palm market retreated…
Malaysian palm oil futures declined on Monday, ending a five-day winning streak, due to weaker soyoil prices and reduced expectations for US biofuel demand. The November palm oil contract on Bursa Malaysia Derivatives Exchange fell 27 ringgit, or 0.54%, to 4,991 ringgit ($1,236.01) per metric ton. The palm market fell from its highest level since December 2024, hit by sharp losses in Chicago soyoil after the US Environmental Protection Agency announced plans to extend a September 1 deadline for oil refiners to prove compliance with biofuel blending laws.
The Chicago soyoil December contract fell more than 2% on Friday and dropped another 2.7% on Monday. Soyoil prices on the Chicago Board of Trade were down by 2.73%. Palm oil price movements are influenced by those of other edible oils due to competition for the global vegetable oils market. Dalian's most-active soyoil contract fell 0.15%, while palm oil's added 0.3%.
Oil prices slipped over $1 a barrel as investors made profits before a likely announcement from Washington on imposing more sanctions on Iran, potentially disrupting Middle East supplies further. A weaker ringgit, palm's currency of trade, made the commodity slightly cheaper for foreign buyers. Palm oil may dip further to 4,901-4,919 ringgit per metric ton, following its inability to break above 5,037 ringgit.
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Also reported by 1 other outlet
- Palm falls more than 1% on weaker Chicago soyoil brecorder.com
