Palm falls for third session on weaker rival oils

KUALA LUMPUR: Malaysian palm oil prices slipped for a third consecutive day on Thursday, dragged down by weaker competition from other edible oils. The benchmark palm oil contract for November delivery on Bursa Malaysia Derivatives Exchange dropped RM48, or 0.97 percent, to RM4,918 per metric ton. Oil prices remained strong after Brent crude crossed the US$100 mark, with traders expecting more shipping disruptions as Iran and the US conducted their most significant attacks on vessels since their six-month conflict began.

Palm oil becomes more appealing to biodiesel feedstock with higher crude oil prices. Dalian's most-traded soyoil contract fell 1.1 percent, and its palm oil contract declined 1.28 percent. Soyoil on the Chicago Board of Trade decreased by 0.31 percent. Palm oil mirrors the price movements of rival edible oils as it vies for a share of the global vegetable oils market.

The Malaysian Palm Oil Board is set to release its August demand and supply data later, along with palm oil export estimates for the September 1-10 period. The Malaysian ringgit, palm's currency of trade, rose 0.02 percent against the dollar, making the commodity marginally pricier for foreign currency holders. Indonesia aims to gain more control over prices of its key commodities at its upcoming new commodity exchange, with the newly appointed chief regulator expressing the country's ambition to become a global price setter.

Asian stocks tumbled on Thursday amid the largest wave of attacks on shipping in the escalating war in the Middle East, keeping oil prices above US$100 a barrel and leaving investors uneasy ahead of US inflation data that will impact monetary policy.