Palm oil prices ended trading lower on Tuesday

Palm oil prices closed lower after crude oil prices corrected from the $100 per barrel mark, said David Ng, a trader at Iceberg X in Kuala Lumpur. Falling soybean oil prices also weighed on market sentiment, he added. Ng sees support at 4,400 ringgit per tonne and resistance at 4,550 ringgit per tonne.

Malaysian palm oil futures fell to a five-week low on Tuesday as lower crude oil prices and lower edible oil prices weighed on the market.

The benchmark FCPO1 palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange fell 87 ringgit, or 1.91%, to 4,468 ringgit (US$1,131.43) per metric tonne, its lowest closing level since March 10.

The market traded weaker due to external pressures, with oil prices lower due to easing geopolitical risks as talks on a possible deal with Iran raised expectations that supply disruptions could be resolved, a Singapore-based analyst said.

“This is weighing on overall sentiment for vegetable oils, with Dalian and Chicago soybean oil prices also declining.”

Benchmark Brent crude lost 0.84% ​​to US$98.53 per barrel at 10:15 GMT. Falling oil futures prices make palm oil a less attractive biodiesel feedstock option.

The most active Dalian soybean oil contract fell 0.48%, while the palm oil contract (CPO1) fell 1.68%. Soybean oil prices on the Chicago Mercantile Exchange fell 0.62%.

Palm oil prices are tracking the price movements of competing edible oils as it competes for share in the global vegetable oil market.

Cargo experts are expected to release their forecasts for Malaysian palm product exports for the period April 1-15 on Wednesday.

An analyst said the market expects exports to slow after a strong pace in March.

India’s palm oil imports fell nearly 19% in March compared to the previous month, reaching a three-month low after rising tropical oil prices prompted refineries to suspend purchases, according to the Mumbai-based Vegetable Oil Refiners Association of India.

The ringgit (USDMYR), the palm oil market currency, strengthened 0.6% against the dollar, making the commodity more expensive for buyers holding foreign currency.

Tags: palm oil, prices