Palm oil prices fall as Middle East tensions weigh
The price of Malaysian palm oils futures fell on Wednesday, reversing earlier gains as the market was weighed down by uncertainty about the developments in the Israel/Iran conflict. However, strong export data helped to limit the losses.
At the close, the benchmark palm oil contract on Bursa Malaysia's Derivatives exchange for September delivery was down 20 Ringgit or 0.5% at $3963 Ringgit ($935.77) per metric ton.
Exports of palm oil products from Malaysia for the period June 1-25 increased between 6.6% to 6.8% compared to the same period one month earlier.
Paramalingam Supramaniam is the director of Selangor brokerage Pelindung Bestari. Despite the positive export figures, the market still remains nervous due to the uncertainty surrounding the Middle East conflict.
Dalian's palm oil contract, which is the most active contract, lost 0.36%. Chicago Board of Trade Soyoil Prices fell 0.06%.
As palm oil competes to gain a share in the global vegetable oils industry, it tracks the price fluctuations of competing edible oils.
Investors reassessed the stability of the ceasefire agreement between Iran and Israel. Support was also provided by data showing that U.S. consumer demand is relatively high.
Palm oil is a better option as a biodiesel feedstock because crude oil futures are stronger.
Palm's trade currency, the ringgit, has strengthened by 0.12% against the US dollar, making it slightly more expensive to buyers who hold foreign currencies.
Data published by the European Commission shows that the imports of soybeans into the European Union for the 2024-25 seasons, which began in July last year, reached 13,79 million metric tonnes by June 22 compared to 12,89 million tons a year ago.
EU palm oil imports were 2.76 million tonnes for the same time period, compared to 41 million tons one year ago.
(source: Reuters)
