Malaysian palm extends losses on weaker rival oils; firmer crude caps downside
07/05/2026 (New Straits Times), Kuala Lumpur - Malaysian palm oil futures on Thursday extended losses for a second consecutive session, as weaker rival edible oils pressured the market, although firmer crude oil prices capped the downside.
The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange slid RM38, or 0.83 per cent, to RM4,541 (US$1,161.38) a metric ton in early trade.
Dalian's most-active soyoil contract fell 1.43 per cent, while its palm oil contract shed 1.92 per cent. Soyoil prices on the Chicago Board of Trade were down 0.63 per cent.
Palm oil tracks the price movements of rival edible oils, as it competes for a share of the global vegetable oils market.
Oil prices rose roughly US$1 in early trade, rebounding from sharp losses in the previous session, as investors weighed the prospects of a Middle East peace deal succeeding.
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
The ringgit, palm's currency of trade, strengthened 0.26 per cent against the dollar, making the commodity more expensive for buyers holding foreign currencies.
Malaysian palm oil prices are likely to rise about 12 per cent to RM5,200 (US$1,316) a metric ton by mid-July, as higher energy prices from the US-Israeli war on Iran boost biodiesel demand and tighten supplies, analyst Dorab Mistry said.
Asian stocks soared to record highs while the dollar slipped and oil nursed steep losses as traders embraced the prospect of a peace deal in the Middle East, although the fate of the critical Strait of Hormuz remains unresolved.