Malaysian palm oil futures fell on Tuesday

Palm oil prices closed lower, partially recouping earlier losses. Weakness in Dalian palm oil prices weighed on the market early in the session, said Abdul Hamid, sales director at Pakistan-based Manzoor Trading. However, according to Hamid, positive palm oil export data for the first ten days of the month, as well as lower production, supported palm oil prices and reduced losses.

The benchmark FCPO1 palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange fell 33 ringgit, or 0.73%, to 4,483 ringgit (US$1,140.13) per metric tonne at the close. The contract had risen 0.24% in the previous session.

The market was under selling pressure in the Dalian palm olein market during the Asian trading session, according to a Kuala Lumpur-based trader. The most active Dalian soybean oil contract rose 0.16%, while the CPO1 palm oil contract fell 1.35%. Soybean oil prices on the Chicago Mercantile Exchange rose 0.81%.

Palm oil prices follow the price movements of competing edible oils as it fights for share in the global vegetable oil market.

Oil prices rose 2% as hopes for an agreement to end the US-Israeli war against Iran faded, and sharp disagreements between Tehran and Washington over a peace proposal once again brought supply issues to the forefront.

Stronger crude oil futures make palm oil a more attractive option for biodiesel feedstock.

According to the Malaysian Palm Oil Council, Malaysian palm oil inventories rose for the first time in four months in April, as exports fell amid a sharp rise in production and increased imports.

Intertek Testing Services, a cargo inspection company, estimated Malaysian palm oil exports for the period from May 1 to 10 at 8.5% compared to the previous month, while independent inspection company AmSpec Agri Malaysia estimated a 10.8% decline.

The ringgit weakened 0.31% against the dollar, making this commodity slightly cheaper for buyers holding foreign currency.

Tags: prices, Malaysia, palm oil