Palm oil falls nearly 3% due to weak crude and Chicago soyoil
The ringgit gained against the dollar and crude oil prices fell. The benchmark July palm oil contract on the Bursa Derivatives exchange fell 133 ringgit or 2.82% to 4,577 Ringgit ($1,176.16). Oil prices continued to fall, falling to two-week lows following Axios' report that Washington was nearing a framework agreement of one page with Iran.
Palm oil is less appealing as a biodiesel feedstock due to weak crude oil futures.
Crude palm oil prices fell below?4,600 as oil prices increased. "The contract's weakness... also coincides with a drop in soybean prices," said David Ng of Kuala Lumpur based trading firm Iceberg X Sdn Bhd.
Prices of soyoil on the Chicago Board of Trade fell by 2.39%.
As palm oil competes to gain a share in the global vegetable oils industry, it tracks the price movement of rival edible oils.
Dalian's palm oil contract also rose by?0.37%, while the most active?soyoil contract increased by 0.78%.
The ringgit (the currency used to trade palm oil) strengthened by 1.01% against US dollars, increasing the price of the commodity for foreign-currency buyers. The European Union's soybean imports for the 2025/26 crop season began in July and reached 11.1 metric tons by May 3. This is down 9% compared to a year earlier. Palm oil imports are down 4%, at 2.4 metric tons.
(source: Reuters)
