Palm oil falls for a second session on weak rival oils

Malaysian palm oil futures slipped for a second straight session on Monday, following weaker rival vegetable oils in Chicago and Dalian, Business Recorder reported. The December contract on the Bursa Malaysia Derivatives Exchange closed 9 ringgit lower, or 0.19%, at 4,663 ringgit ($1,142.05) a metric ton. It traded between 4,642 and 4,720 ringgit after shedding 4.61% in the previous week.

Firmer crude and a weaker ringgit offered some support, since higher crude makes palm more appealing as biodiesel feedstock and a softer currency lowers costs for overseas buyers. A Kuala Lumpur trader, however, said weaker rival oils in Dalian and Chicago capped the gains. Brent crude climbed more than 3% after US President Donald Trump rejected an Iranian peace deal meant to resolve the conflict and reopen the Strait of Hormuz.

Export data added to the picture. Cargo surveyors Intertek Testing Services and AmSpec Agri Malaysia estimated that Malaysian palm product shipments for September 1 to 25 dropped by somewhere between 15.1% and 24.3% compared with the prior month. Separately, the GAPKI palm oil association said Indonesian exports reached 3.19 million metric tons in July, which was 9.87% below the same period a year earlier.