Palm slips as Dalian palm oil weighs

Prices of Malaysian palm oils futures fell on Tuesday as Dalian palm olein, which was weaker than usual, had a negative impact on the market. The benchmark palm oil contract for July delivery on the 'Bursa Malaysia derivatives exchange' fell 33 ringgit or 0.73% to $4,483 ringgit (1,140.13 USD) per metric ton. The contract increased by 0.24% during the previous session.

A Kuala Lumpur based trader reported that the market was affected by selling pressure on?Dalian Palm Olein during Asian trading.

Dalian's most-active palm oil contract fell 1.35%, while soyoil prices rose 0.16%. The Chicago Board of Trade Soyoil prices rose by 0.81%.

Palm oil follows the price movement of rival edible oils as it competes to gain a share in the global vegetable oil market. Prices of oil rose by 2% after hopes for an agreement to end the U.S./Israeli war against Iran faded.

Palm oil is a better option as a biodiesel source because crude oil futures are stronger. Malaysian Palm Oil Board data showed that palm oil inventories in April rose for the first time in four months, as exports dropped amid a "surge in production" and higher imports. Intertek Testing Services, a cargo surveyor, estimated that Malaysian palm oils exports for May 1-10 were up 8.5% compared to a month ago. AmSpec -Agri Malaysia, an independent inspection company - estimated that exports fell 10.8%.

The palm ringgit's currency, the dollar, fell by 0.31%, making it slightly cheaper for foreign buyers.

(source: Reuters)