Palm opens lower on weaker Dalian oils, export data, crude prices
New Straits Times (17/02/2025) - KUALA LUMPUR: Malaysian palm oil futures fell on Monday, pressured by weaker rival Dalian oils, lower crude oil prices and a reduced export forecast in the first two weeks of February.
The benchmark palm oil contract for May delivery on the Bursa Malaysia Derivatives Exchange slid RM28, or 0.62 per cent, to RM4,471 (US$1,010.85) a metric ton in early trade. The contract rose 0.83 per cent in the previous session.
Dalian's most-active soyoil contract fell 1.29 per cent, while its palm oil contract lost 0.38 per cent. The Chicago Board of Trade is closed for a public holiday.
Palm oil tracks price movements of rival edible oils, as it competes for a share of the global vegetable oils market.
Oil prices fell for a fourth day on expectations a Russia-Ukraine peace deal could ease sanctions disrupting supply flows and on concerns that global tariff wars could slow economic growth and weaken energy demand.
Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
Cargo surveyors estimated Malaysian palm oil exports to have fallen between 12.3 per cent. and 19.9 per cent. during February 1-15, from a month earlier.
The ringgit, palm's currency of trade, strengthened 0.2 per cent. against the dollar, making the commodity more expensive for buyers holding foreign currencies.
Palm oil may retest support at RM4,540 per metric ton, a break below could open the way towards the RM4,437 to RM4,488 range, Reuters technical analyst Wang Tao said.
Asia share markets were becalmed by a Wall Street holiday while the dollar nursed losses suffered after a weak US retail sales report rekindled wagers for two rate cuts this year.
($1 = 4.4230 ringgit)