Palm opens over 2pct lower on weaker crude and Chicago soyoil, set for weekly loss
KUALA LUMPUR: Malaysian palm oil futures opened more than two per cent lower on Friday and were on track for a weekly loss, as softer Chicago soyoil and crude oil prices pressured the market.
Malaysian palm oil futures opened more than two percent lower on Friday, indicating a potential weekly loss for the market, according to the SOURCE. The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange fell RM98, or 2.05 percent, to RM4,674 per metric ton in early trade, as reported by the SOURCE.
The contract has fallen 3.1 percent this week after rising 1.74 percent the previous week, as stated in the SOURCE. The decline in oil prices, due to the possibility of a truce between the US and Iran and the bombing of Saudi Arabia by Houthi rebels, makes palm a less attractive option for biodiesel feedstock, as noted in the SOURCE.
Soyoil prices on the Chicago Board of Trade fell 0.83 percent, further contributing to the downward trend, according to the SOURCE. The ringgit, palm's currency of trade, strengthened 0.22 percent against the dollar, making the commodity slightly more expensive for foreign buyers, as mentioned in the SOURCE. With rising inventories in Malaysia and sluggish buying by India, the world's biggest importer, weighing on the market, palm oil prices are expected to remain under pressure, according to industry officials cited in the SOURCE.
Asian shares performed well on Friday as bond selling pushed longer-dated US yields to two-decade highs, raising borrowing costs globally and challenging high equity valuations, as reported by Reuters technical analyst Wang Tao in the SOURCE.
Written by urgent.news from New Straits Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
