Palm oil falls by over 1% as crude and Chicago soyoil weaken.

After two sessions of gains on Tuesday, Malaysian palm oil futures dropped more than 1% Wednesday, as lower crude oil prices and Chicago soyoil prices impacted the market.

By midday, the benchmark palm 'oil 'contract for July delivery at the Bursa Derivatives Exchange had fallen 63 ringgit or 1.34% to 4,647 Ringgit ($1,176.16).

David Ng, a proprietary trading at Kuala Lumpur's trading firm 'Iceberg X Sdn Bd,' said that the crude palm oil price fell during Asian trading hours due to lower crude oil and soybean oil prices.

"We see prices above 4,600 Ringgit and resistance at 4,750 Ringgit," he added.

Dalian's soyoil contract with the highest volume of activity rose by 0.74% while palm oil contracts gained 0.28%. Prices for soyoil on the Chicago Board of Trade fell by 0.92%.

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

Prices of oil fell for the second day in a row on the expectation that the bottled up supply from the Middle East region, which is a major producer, could be released after U.S. president Donald Trump suggested a possible deal to end the Iran war might be reached.

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

The ringgit (palm's trade currency) strengthened by 0.23% versus the dollar making the?"commodity" more expensive for buyers holding foreign currencies.

Data from the European Commission showed that by May 3 of this year, soybean imports in the European Union for 2025/26, which began July, were 11.1 million tons, down 9%?from the previous period. Palm oil imports, however, were down 4%, at 2.4 millions?tons.

Technical analyst Wang Tao stated that palm oil may retrace in a range of 4,624-4 639 ringgits per metric tonne, after failing to break through a major resistance at 4,713 rings.

(source: Reuters)