Malaysian palm oil futures fell nearly 3% on Wednesday

According to David Ng, a trader at Iceberg X in Kuala Lumpur, vegetable oil prices fell below 4,600 ringgit per tonne amid a possible peace agreement between the US and Iran. Ng also noted that the weakening of crude palm oil prices coincided with a drop in soybean oil prices. He believes palm oil prices will strengthen above 4,500 ringgit per tonne and face resistance at 4,680 ringgit per tonne.

Palm oil futures in Malaysia fell nearly 3% on Wednesday amid lower Chicago crude and soybean oil prices and a strengthening ringgit against the dollar.

The benchmark FCPO1 palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange fell 133 ringgit, or 2.82%, to 4,577 ringgit (US$1,176.16) per metric ton at the close.

Oil prices continued to fall, hitting two-week lows after Axios reported that Washington believes it is close to a one-page framework agreement with Iran to end the war.

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

“Crude palm oil prices fell below 4,600 ringgit due to pressure from oil prices. “The contract’s weakness also coincides with a drop in soybean oil prices,” said David Ng, a trader at Kuala Lumpur-based trading firm Iceberg X Sdn Bhd.

Soybean oil prices on the Chicago Mercantile Exchange fell 2.39%. Palm oil prices are tracking the price movements of competing edible oils as they compete for share in the global vegetable oil market. The most active soybean oil contract in Dalian rose 0.78%, while the palm oil contract gained 0.37%.

The ringgit strengthened 1.01% against the dollar, making the commodity more expensive for buyers holding foreign currencies.

According to European Commission data, the European Union’s soybean imports for the 2025/26 season, which began in July, reached 11.1 million metric tons as of May 3, down 9% from the same period last year, while palm oil imports fell 4% to 2.4 million tons.

Tags: palm oil, prices