New Straits Times (22/05/2025) - KUALA LUMPUR: Malaysian palm oil futures extended losses on Thursday for a second consecutive session, weighed down by rival edible oils and lower crude oil prices.

The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange slid RM49, or 1.26 per cent, to RM3,845 (US$903.86) a metric ton in early trade.

Dalian's most-active soyoil contract fell 0.87 per cent, while its palm oil contract shed 1.21 per cent. Soyoil prices on the Chicago Board of Trade were down 3.29 per cent.

Palm oil tracks price movements of rival edible oils, as they compete for a share of the global vegetable oils market.

Oil prices eased as unexpected builds in US crude and fuel inventories raised demand concerns, while investors stayed cautious, focusing on renewed Iran-US nuclear talks.

Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.

The ringgit, palm's currency of trade, strengthened 0.3 per cent against the dollar, making the commodity more expensive for buyers holding foreign currencies.

Palm oil may test support at RM3,866 per metric ton, a break below which could open the way toward RM3,839, Reuters technical analyst Wang Tao said.

Longer-dated US Treasury yields hit their highest in 18 months on Thursday, while Asian stocks and the dollar slipped as worries of a worsening fiscal outlook in the world's biggest economy weighed on investor sentiment.

Read more at https://www.nst.com.my/business/corporate/2025/05/1219771/palm-opens-lower-weaker-rival-edible-oils-crude-oil