Mumbai, June 04 (Commoditiescontrol): Malaysian palm oil futures experienced a significant decline of over 3% on Tuesday, following a public holiday. The downturn was primarily attributed to the weakening of rival Dalian contracts and crude oil prices.
The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange witnessed a substantial drop of 135 ringgit (3.34%), settling at 3,941 ringgit ($839.73) per metric ton in early trade. This decrease contrasts with the 5% gain observed in the previous week.
Contributing factors to the decline include a 1.45% fall in Dalian's most-active soy oil contract and a 2.03% decrease in its palm oil contract. Meanwhile, soyoil prices on the Chicago Board of Trade showed a modest increase of 0.32%.
The weakening of crude oil prices further exacerbated the situation, rendering palm oil less appealing as a biodiesel feedstock. Brent crude futures experienced a 0.68% decline, trading at $77.83 per barrel.
Additionally, the strengthening of the ringgit, the currency in which palm oil is traded, by 0.26% against the dollar made the commodity relatively more expensive for foreign buyers.
The decline in Malaysian palm oil futures underscores the interconnectedness of global commodity markets and the susceptibility of palm oil prices to fluctuations in related markets. Investors are advised to closely monitor developments in the Dalian and crude oil markets, as these will likely continue to influence palm oil prices in the near future.
Global Futures Palm oil and Soy Oil
(By Commoditiescontrol Bureau; +91-9820130172)
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