Palm oil prices fell on Tuesday

Palm oil prices fell amid a weakening soybean oil market and concerns about production growth in the coming weeks, said David Ng, a trader at Iceberg X in Kuala Lumpur. He sees support for crude palm oil at 4,500 ringgit per tonne and resistance at 4,680 ringgit per tonne. However, the contract still showed gains for the month.

The benchmark FCPO3 palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange fell 39 ringgit, or 0.85%, to 4,549 ringgit (US$1,114.40) per metric tonne at the close.

The contract has risen 0.31% this month, snapping a two-month decline.

The market declined, following a weakening soybean oil market during the Asian trading session, and given that expectations of increased production in the coming weeks are also weighing on sentiment, said David Ng, a trader at Kuala Lumpur-based trading firm Iceberg X Sdn Bhd.

The most actively traded soybean oil contract in Dalian fell 0.14%, while the palm oil contract fell 0.55%. Soybean oil prices on the Chicago Mercantile Exchange fell 0.33%.

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

Lower oil prices make palm oil a less attractive option for biodiesel production.

According to cargo experts, Malaysian palm oil exports rose between 4.7% and 11.9% in June compared to the previous month.

The ringgit weakened 0.37% against the dollar, making the commodity slightly cheaper for buyers holding foreign currency.

According to the Indonesian Palm Oil Association, Indonesia’s palm oil exports, including refined products, totaled 2.78 million tonnes in April, compared to 1.78 million tonnes in the same month last year.

Tags: prices, palm oil