Palm falls on weaker Dalian but poised for third weekly gain
05/06/2026 (Reuters), Kuala Lumpur - Malaysian palm oil futures extended losses on Friday for a second straight session, tracking weaker rival Dalian oils, though stronger Chicago soyoil and a softer ringgit limited the decline.
The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange slid RM48, or 1.04 per cent, to RM4,553 (US$1,129.78) a metric ton in early trade.
However, the contract is headed for a third weekly gain, rising 0.51 per cent so far.
Dalian's most-active soyoil contract fell 1.37 per cent, while its palm oil contract shed 2.49 per cent. Soyoil prices on the Chicago Board of Trade were up 0.33 per cent.
Palm oil tracks the price movements of rival edible oils, as it competes for a share of the global vegetable oils market.
The ringgit, palm's currency of trade, weakened 0.5 per cent against the dollar, making the commodity cheaper for buyers holding foreign currencies.
Oil prices were little changed on Friday following sharp declines in the previous session, with prospects dimming for a near-term end to the US-Israeli war with Iran after the Hezbollah militia rejected a new ceasefire in Lebanon.
Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
Dry weather is disrupting crop planting across Asia, raising concerns about food supplies in the world's most populous region, and an expected severe El Nino weather pattern could inflict more damage.
Palm oil may test a support at RM4,538 per metric ton, a break below which could open the way towards the RM4,440 to RM4,492 range, Reuters technical analyst Wang Tao said.
Asian share markets slid on Friday as investors took profits on technology stocks and turned defensive ahead of the weekend, wary of the flare-up in Middle East hostilities as US-Iran peace talks remain in limbo.