Palm falls as weaker Chicago soyoil weighs

Business Recorder reported that Malaysian palm oil futures slipped on Monday, breaking a rally that had lasted five sessions. The November contract on the Bursa Malaysia Derivatives Exchange was down 27 ringgit, or 0.54%, at 4,991 ringgit ($1,236.01) per metric ton by midday. Prices had pulled back from their highest level since December 2024.

The main drag came from Chicago, where soyoil fell sharply after the US Environmental Protection Agency signalled plans to extend the 1 September date by which refiners must show they comply with biofuel blending rules. Chicago Board of Trade soyoil dropped 2.73% on Monday, extending a fall of more than 2% in overnight trade on Friday. A trader in Kuala Lumpur said the slide dampened overall market sentiment.

Crude oil slipped by over $1 per barrel as investors took profit before an expected US announcement on fresh Iran sanctions. Weaker crude makes palm less attractive as a biodiesel feedstock, while the ringgit's 0.07% fall against the dollar made the commodity slightly cheaper for foreign buyers. In Dalian, soyoil eased 0.15% while palm oil rose 0.3%.