Palm oil falls for second consecutive session due to crude oil weakness

The price of crude oil fell, and the market was impacted by it.

The benchmark palm?contract? for June delivery at Bursa Malaysia's Derivatives exchange fell 45 ringgit or 0.94% to 4,766 Ringgit ($1,183.22).

Paramalingam Supramaniam said that the market is still largely influenced by the crude oil price due to the?continuing uncertainty regarding the geopolitical conditions in the Middle East. Brent crude fell 0.75% at 1010 GMT to $111.93 per barrel. Palm oil is less appealing as a biodiesel feedstock due to weaker crude oil futures.

Supramaniam stated that the market will remain resilient if exports continue to move in the same direction they did in March and existing stock levels stay the same. Malaysia's palm oils inventories dropped by the most since July last year, according to a survey. This was due to a spike in exports that more than offset a modest rise in production.

On April 10, the Malaysian Palm Oil Board will release its report on supply and demand.

Dalian's palm oil contract dropped 0.36%, while its most active?soyoil contract increased 0.85%. Prices of soyoil on the Chicago Board of Trade rose by 0.11%.

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

The ringgit (palm's trade currency) fell 0.07% to the dollar making the commodity slightly more affordable for buyers with foreign currencies.

(source: Reuters)