Malaysian palm oil futures closed down on Monday, reversing the previous session’s gains, as softer soyoil prices and weaker export data pressured the market.

The benchmark palm oil contract FCPO1! for October delivery on the Bursa Malaysia Derivatives Exchange slid 89 ringgit, or 2.06%, to 4,226 ringgit ($998.35) a metric ton at the close.

Crude palm oil futures traded lower due to weaker soybean oil prices and also declining exports, said David Ng, a proprietary trader at Kuala Lumpur-based trading firm Iceberg X Sdn Bhd.

Dalian’s most-active soyoil contract (DBYcv1) fell 0.47%, while its palm oil contract CPO1! climbed 0.16%. Soyoil prices on the Chicago Board of Trade ZL1! were down 0.79%.

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

Cargo surveyors estimated that exports of Malaysian palm oil products for July 1-20 fell between 3.5% and 7.3% from a month earlier.

The ringgit USDMYR, palm’s currency of trade, strengthened 0.26% against the dollar, making the commodity more expensive for buyers holding foreign currencies.

Oil prices dipped slightly, with the latest European sanctions on Russian oil expected to have minimal impact on supplies while U.S. tariffs ensure demand concerns remain. O/R

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