Malaysian Palm Oil Futures Decline Amid Weaker Soyoil and Crude Oil Prices
After five consecutive sessions of gains, Malaysian palm oil futures retreated on Tuesday, pressured by declining prices in Chicago soyoil and global crude oil markets. The benchmark palm oil contract for April delivery on the Bursa Malaysia Derivatives Exchange dropped 56 ringgit, or 1.28%, settling at 4,311 ringgit ($968.33) per metric ton in early trading.
Chicago Soyoil Weakness – Soyoil prices on the Chicago Board of Trade (CBOT) registered a 3.4% decline, adding downward pressure on palm oil.
Crude Oil Retreats – Global oil prices edged lower after U.S. President Donald Trump announced a temporary suspension of steep tariffs on Mexico and Canada, easing concerns over trade disruptions.
Brent Crude Performance – Brent crude futures fell 0.68% to $75.44 per barrel by 0240 GMT, further dampening sentiment in the vegetable oil market, which is closely linked to energy prices.
Currency Strengthening – The Malaysian ringgit (USDMYR), the primary trading currency for palm oil, strengthened by 0.4% against the U.S. dollar, potentially impacting export competitiveness.
Brazilian Soybean Outlook – Agribusiness consultancy Celeres projected Brazil's 2024/25 soybean crop to reach a record 174 million metric tons, reinforcing expectations of ample global oilseed supplies.
Technical Analysis – According to Reuters technical analyst Wang Tao, palm oil futures may retrace to a range of 4,265–4,315 ringgit per ton, following a failure to breach the 4,402 ringgit resistance level.
