Palm oil is weaker than rival oils and crude

Malaysian palm futures fell Monday, following rival vegetable oils?in Chicago and Dalian, while crude oil prices also weighed on sentiment.

The benchmark contract for palm oil delivery in August on the Bursa Malaysia Derivatives Exchange fell 25 ringgit or 0.56% to 4,450 ringgit (1,099.31 USD) per metric tonne at the close.

Anilkumar bagani, the head of research for Mumbai-based Sunvin Group, said, "The futures traded sideways today after opening lower, following a selloff on energy prices, Chicago soybean oil and Chinese vegetable oils futures during today's Asian hour."

Dalian's palm oil contract, which is the most active contract in Dalian, fell by 1.34% while soyoil prices dropped by 0.29%. Prices of soyoil on the Chicago Board of Trade fell by 1.76%.

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

Exports of Malaysian palm oil products rose by 23.8%, according to AmSpec Agri Malaysia. Intertek Testing Services reported a 9.6% increase.

The price of oil?fell to a three-month low after U.S. president Donald Trump and Iran’s deputy foreign minister announced they had reached a?initial agreement to end the conflict and resume traffic through Strait of Hormuz.

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

A circular posted on the Malaysian Palm Oil Board's website on Monday showed that Malaysia had lowered the crude palm oil price reference for July to a level which maintains the 10% export duty.

A leading industry group said that India's palm?imports increased in May after recovering from a low of four months, but were still below normal levels. This was because refiners bought more soyoil, which is cheaper, as palm oil's advantage in price decreased. 1 Please enter the freight rate from Peninsula Malaysia/Sumatra, and then press Enter. Or, double-click between the brackets to view rates for China, India, Pakistan, and Rotterdam. Terminal users can view cash and futures edible oils prices by double clicking the codes between the brackets. To move to the next page of the same chain hit F12. To go back, hit F11. 1

(source: Reuters)