Palm slips on weaker rival oils, firmer crude caps losses
09/06/2026 (Reuters), Kuala Lumpur - Malaysian palm oil futures slipped on Tuesday, tracking weakness in rival edible oils, while firmer crude oil prices capped the losses.
The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange slid RM31, or 0.68 per cent, to RM4,544 (US$1,120.04) a metric ton in early trade.
Dalian's most-active soyoil contract fell 0.7 per cent, while its palm oil contract shed 0.53 per cent. Soyoil prices on the Chicago Board of Trade were down 0.28 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 inched up in early trade after Iran and Israel left the door open to a possible resumption of attacks on each other, though they had called a halt to hostilities following an appeal from US President Donald Trump.
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
The ringgit, palm's currency of trade, strengthened 0.29 per cent against the dollar, making the commodity slightly more expensive for buyers holding foreign currencies.
Indonesia's Trade Ministry published technical regulations that give the central government more control over coal, palm oil and ferroalloy exports, part of a controversial plan by President Prabowo Subianto to boost earnings from the country's plentiful natural resources.
Indonesia's Agriculture Minister said that the government will ask police to investigate around 300 palm oil companies regarding fresh fruit bunch prices, which have plunged as a result of uncertainties surrounding a plan to bring all palm oil exports under the control of the state.
Palm oil may retest resistance at RM4,613 per metric ton, as a bounce triggered by support at RM4,538 appears incomplete, Reuters technical analyst Wang Tao said.
Asian stock markets tried to stabilise on Tuesday and oil prices came off highs after Israel and Iran said they would halt attacks on each other for now, while ever-hopeful investors bought the latest dip in semiconductor stocks.