Malaysian Palm Oil Falls as Weaker Rival Oils, Crude Weigh

Malaysian Palm Oil Slips as Rival Oils and Crude Weigh

Malaysian palm oil futures fell on Monday, tracking weakness in rival edible oils and lower crude prices. The benchmark August contract on the Bursa Malaysia Derivatives Exchange shed 24 ringgit, or 0.53%, to 4,462 ringgit per metric ton.

Rival oils on China's Dalian exchange saw declines: soyoil fell 0.66% and palm oil lost 0.17%. Chicago Board of Trade was closed for a holiday. Palm oil competes for global vegetable oil market share, often mirroring rival price moves.

Crude oil prices hit two-week lows on optimism over a potential U.S.-Iran peace deal, making palm oil less competitive for biodiesel blending. The ringgit, palm's trade currency, strengthened 0.43% against the dollar, raising costs for foreign buyers.

Argentina announced it will gradually reduce export taxes on major agricultural commodities over the next two years, adding to supply-side pressures. From a technical perspective, palm oil may test support at 4,452 ringgit; a break could open the way to the 4,394–4,421 ringgit range.