Palm oil prices fell on Thursday following a drop in crude oil prices

Palm oil prices fell following the fall in crude oil prices. Easing tensions in the Middle East have pushed crude oil prices back to pre-war levels. Kenanga Futures analysts noted in a research note that overall market sentiment was also hurt by a drop in tech stocks on Wall Street amid concerns that the AI-fueled stock market rally has gone too far. The Bursa Malaysia derivatives contract for September delivery fell 75 ringgit to 4,558 ringgit per tonne.

Malaysian palm oil futures fell for a third consecutive day on Thursday, following lower prices for crude oil and competing vegetable oils, while export data also weighed on investor sentiment.

The benchmark FCPO3 palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange fell 75 ringgit, or 1.62%, to 4,558 ringgit (US$1,107.65) per metric ton at the close of trading.

The most actively traded Dalian soybean oil contract fell 0.37%, while the palm oil contract declined 1.81%. Soybean oil prices on the Chicago Mercantile Exchange fell 0.38%.

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

According to independent inspection company AmSpec Agri Malaysia, Malaysian palm oil exports increased by 11.1% between June 1 and 25, while Intertek Testing Services, a cargo testing company, reported a 10.6% increase.

On Thursday, crude oil prices fell to pre-war levels with Iran, as expectations of increased supply from the Middle East outweighed demand concerns.

Palm oil prices are also often influenced by the price of oil, with lower oil prices making palm oil a less attractive option for biodiesel production.

Meanwhile, Indonesia issued a regulation mandating the use of B50 biodiesel fuel from July 1, providing a three-month transition period for retailers to clear existing stocks, a senior Energy Ministry official announced Thursday.

Tags: palm oil, prices