Palm follows rival oils higher

Malaysian palm oil futures rose for a second session on Tuesday, tracking Chicago soyoil and Dalian palm oil higher, with a weaker currency adding support.

The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange gained RM19, or 0.47 per cent, to RM4,090 (US$965.76) a metric ton by 0232 GMT.

Dalian’s most-active soyoil contract slipped 0.1 per cent, while its palm oil contract gained 0.85 per cent. Soyoil prices on the Chicago Board of Trade rose 0.28 per cent.

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

Oil prices eased on Tuesday after rising almost 2 per cent in the previous session, as investors assessed new developments on US tariffs and a higher-than-expected OPEC+ output hike for August.

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

The ringgit, palm’s currency of trade, weakened 0.12 per cent against the dollar, making the commodity cheaper for buyers holding foreign currencies.

Stock markets in Asia took in stride the latest twist in US President Donald Trump’s tariff roll-out on Tuesday, as the dollar held onto gains and oil retreated.

Tags: soyoil, Malaysia, palm oil, futures, benchmark contract