Palm falls as weaker Chicago soyoil weighs

KUALA LUMPUR: Malaysian palm oil futures slipped on Monday, snapping a five-session winning streak, weighed down by weaker soyoil prices amid reduced US biofuel demand expectations. The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange was down 27 ringgit, or 0. 54%, at 4, 991 ringgit ($1, 236. 01) a metric ton by the midday break. The palm market retreated from its highest level since December 2024, pressured by sharp losses in Chicago soyoil after the US Environmental Protection Agency signaled plans to extend a September 1 deadline for oil refiners to demonstrate compliance with the nation’s biofuel blending laws, a Kuala Lumpur based trader said. “Chicago soyoil’s December contract fell more than 2% in overnight trading on Friday and extended its decline by another 2. 7% on Monday, weighing on overall sentiment, ” the trader added. Soyoil prices on the Chicago Board of Trade were down 2. 73%. Palm oil tracks price movements of rival edible oils, as it competes for a share of the global vegetable oils market. Dalian’s most-active soyoil contract fell 0. 15%, while its palm oil contract added 0. 3%. Oil prices slipped more than $1 a barrel as investors took profits ahead of an expected announcement from Washington on imposing more sanctions on Iran that may further disrupt supplies from the Middle East. Weaker crude oil futures make palm a less attractive option for biodiesel feedstock. The ringgit, palm’s currency of trade, weakened 0. 07% against the dollar, making the commodity slightly cheaper for buyers holding foreign currencies. Palm oil may retrace further into 4, 901-4, 919 ringgit per metric ton, following its failure to break resistance at 5, 037 ringgit.

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