Palm oil falls by more than 1% due to weaker Chicago soyoil
Malaysian palm oil futures fell more than 1% on Monday, ending a five session winning streak. Weaker Chicago soyoil price pressured the market amid lower expectations for U.S. demand for biofuel.
At the close, the benchmark palm oil contract on Bursa Malaysia's Derivatives exchange for November delivery was down 72 Ringgit or 1.43% at $4,946 ringgit (1,224.26 USD) per metric ton.
A Trader in Kuala Lumpur said that the palm market has fallen from its highest level since December 2024. This was due to sharp losses of Chicago soyoil after the U.S. Environmental Protection Agency announced plans to extend an August 1 deadline for oil refiners to comply with U.S. biofuel laws.
Chicago Board of Trade soyoil prices were down by 2.36%. Dalian's soyoil contract was the most active, and it fell by 0.35%. Palm oil contracts were down 0.01%.
As palm oil competes to gain a share in the global vegetable oils industry, it tracks price changes of competing edible?oils.
Oil prices fell?more that $1 per barrel as investors took profit?after recent gains and awaited the details of new U.S. Sanctions on Iran which could further disrupt supply from the Middle East.
Palm oil is less appealing as a biodiesel feedstock due to the weaker crude?oil prices.
The ringgit (palm's trade currency) has weakened by 0.12% against the US dollar, making the commodity slightly more affordable for foreign buyers.
(source: Reuters)
