Palm oil falls due to weaker crude and rival oils, as well as lower export data

Malaysian palm-oil futures fell?on a Monday due to the weakness of rival edible oils on the Dalian Market. Crude oil prices, as well as lower export data and crude oil price declines also affected sentiment.

At the close, the benchmark 'palm oil' contract for August delivery at Bursa Malaysia derivatives Exchange fell 14 ringgit or 0.31% to 4,472 Ringgit ($1,131.87).

AmSpec Agri Malaysia is an independent inspection company that reports that exports of Malaysian Palm Oil Products for the period May 1-25 fell by 18.0% in comparison to April 1-25. Intertek Testing Services reported a 14.5% drop.

Dalian's soyoil contract, which is the most active contract, fell by 0.87%. Its palm oil contract also dropped by 0.18%. The Chicago Board of Trade will be closed on a holiday.

As it competes to gain a share of the global vegetable oil market, palm oil monitors the price movement of competing edible oils.

Oil prices dropped more than 4% on Monday, reaching a two-week low. This was attributed to the optimism that the United States is moving closer to a deal with Iran. However, they are still at odds on key issues such as the blockade of the Strait of Hormuz.

Palm oil is less appealing as a biodiesel feedstock due to lower crude oil futures.

GAPKI data released on Monday showed that Indonesia exported 2,17 million metric tonnes of palm oil-based products in March. This is down from the 2.88 million tons shipped during the same period last year.

Prices of Indonesian fresh?fruit bunches (FFBs) have fallen at the farmer's level since the announcement that a new plan would?channel commodities through a central government-run company.

The palm ringgit's currency of trade strengthened by 0.38% against U.S. dollars, making it more expensive for buyers who hold foreign currencies.

(source: Reuters)