Palm oil futures tumble

Malaysian palm oil futures closed lower on Tuesday, weighed down by weaker rival Dalian oils and concerns over China’s retaliation against fresh US tariffs on Chinese goods.

The benchmark palm oil contract for May delivery on the Bursa Malaysia Derivatives Exchange fell 137 ringgit, or 3.06%, to close at 4,347 ringgit ($973.79) a metric ton, the lowest close in nearly a month.

Earlier in the day, China swiftly retaliated against fresh US tariffs, hiking import levies covering $21 billion worth of American agricultural and food products and moving the world’s top two economies a step closer towards an all-out trade war.

“China imposed countermeasures against US tariffs, targeting American agricultural exports, increasing uncertainty in the global vegetable oil markets which has spooked traders,” said Paramalingam Supramaniam, director at Selangor-based brokerage Pelindung Bestari.

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