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Malaysian palm oil drops, rivals follow suit

Malaysian palm oil drops, rivals follow suit

The price of palm oil in Malaysia fell for the third time on Tuesday, to its lowest close in almost two months. This was due to lower prices for rival vegetable oils at Dalian and Chicago and weaker export data.

The benchmark June palm oil contract on Bursa Malaysia's Derivatives exchange lost 58 Ringgit or 1.35% to close at 4,247 Ringgit per metric ton, its lowest price since January 27.

Anilkumar bagani, head of commodity research at Mumbai-based Sunvin Group vegetable oils brokerage, said: "The sentiments in palm oil are bearish right now because it has been forced by the absence of destination purchasing to reduce its premium over soy oil."

Amspec Agri Malaysia estimates that Malaysian palm oil exports fell by 8.47% on a monthly basis between March 1 and 25, while Intertek Testing Services estimates a drop of 8.1%.

The palm oil contract at the Dalian Commodity Exchange fell by 2.07%, while soyoil prices dropped by 0.86%. Chicago Board of Trade Soyoil Prices dropped by 0.21%.

As palm oil competes to gain a share in the global vegetable oils industry, it tracks price changes of competing edible oils.

(source: Reuters)