Palm extends losses on weak crude, firm ringgit, sluggish exports

Malaysian palm oil futures fell for a second consecutive session on Monday, according to Business Recorder. The benchmark December contract on the Bursa Malaysia Derivatives Exchange dropped 41 ringgit, or 0.84%, to close at 4,857 ringgit ($1,191.90) per metric ton, after a 0.77% fall in the prior session. A Kuala Lumpur-based trader said weaker oil and a firmer ringgit weighed on the market.

Oil prices touched their lowest level in 11 days as hopes grew for diplomatic progress in the Iran war and attention turned to a partial recovery in Saudi shipments. Lower crude prices reduce palm oil's appeal as a biodiesel input. Cargo surveyors estimated that shipments of Malaysian palm oil products during September 1 to 20 contracted 12.8% to 24.7% versus a month before.

A 0.02% gain in the ringgit against the dollar left the commodity slightly pricier for foreign currency buyers. Dalian's most-active soyoil contract dropped 0.11%, its palm oil contract shed 0.92%, and Chicago Board of Trade soyoil slipped 0.45%.