Malaysian palm oil futures closed lower for the second straight session on Tuesday, tracking soyoil weaknesses in the Dalian and Chicago markets and softer crude oil prices following a lack of fundamental triggers.

The benchmark palm oil contract FCPO1! for September delivery on the Bursa Malaysia Derivatives Exchange lost 16 ringgit, or 0.4%, to 3,970 ringgit ($946.14) a metric ton at the close.
“Market sentiment remains cautious amid broader macro uncertainties, awaiting clearer fundamental signals,” said Darren Lim, commodities strategist at Singapore-based brokerage Phillip Nova.

“Subdued crude and edible oil prices, along with a firmer ringgit against the U.S. dollar, had given pressure to palm oil prices in the lack of fresh fundamental triggers.”

Dalian’s most-active soyoil contract (DBYcv1) fell 0.03%, while its palm oil contract CPO1! gained 0.29%. Soyoil prices on the Chicago Board of Trade (CBOT) ZL1! slipped 0.02%.

Palm oil tracks the price movements of rival edible oils as it competes for a share of the global vegetable oils market.

Oil prices were steady on Tuesday as investors assessed expectations that OPEC+ will announce an output hike for August at an upcoming meeting as well as trade negotiations. O/R

Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.

The ringgit USDMYR, palm’s currency of trade, strengthened 0.33% against the dollar, making the commodity more expensive for buyers holding foreign currencies.

Indonesia’s crude and refined palm oil exports soared 53% in May from a year ago, data from the statistics bureau showed, as the tropical oil started trading at a discount to its rivals, boosting demand from key buyers.

Indonesia raised its crude palm oil (CPO) reference price to $877.89 per metric ton for July, up from $856.38 per metric ton in June, a trade ministry regulation showed on Monday.

Exports of Malaysian palm oil products for June rose 4.3% month-on-month, according to independent inspection company AmSpec Agri Malaysia, while according to Intertek Testing Services, it grew 4.7%.
Source: Reuters