Palm oil prices fell more than 1 percent due to weakness in crude oil and Chicago soybean oil

Palm oil prices fell more than 1 percent due to weakness in crude oil and Chicago soybean oil

Malaysian palm oil futures fell more than 1% on Wednesday, following two consecutive sessions of gains, as weaker crude oil and Chicago soyoil prices pressured the market.

The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange slid 63 ringgit, or 1.34%, to 4,647 ringgit ($1,176.16) a metric ton by the midday break.

The crude palm oil market traded lower following weakness in soybean oil and lower crude oil prices during Asian trading hours, said David Ng, a proprietary trader at Kuala Lumpur-based trading firm Iceberg X Sdn Bhd.

“We see prices supported above 4,600 ringgit and resistance at 4,750 ringgit,” he added.

Dalian’s most-active soyoil contract rose 0.74%, while its palm oil contract added 0.28%. Soyoil prices on the Chicago Board of Trade were down 0.92%.

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

Oil prices fell for a second day on expectations that bottled-up supply from the key Middle East producing region could resume flowing after U.S. President Donald Trump indicated a possible peace deal may be reached to end the war with Iran.

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

The ringgit, palm’s currency of trade, strengthened 0.23% against the dollar, making the commodity more expensive for buyers holding foreign currencies.

European Union soybean imports for the 2025/26 season, which began in July, had reached 11.1 million metric tons by May 3, down 9% from the same period a year earlier, while palm oil imports were down 4% at 2.4 million tons, European Commission data showed.

Palm oil may retrace to a range of 4,624-4,639 ringgit per metric ton, as it failed to break a key resistance at 4,713 ringgit, Reuters technical analyst Wang Tao said.

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Source: Online/OFA