Malaysian palm oil extends losses amid China tariff fears, weak demand

Malaysian palm oil futures closed lower for a second consecutive session on Thursday, as fears of US tariffs imposed on China and muted demand for palm sparked a sell-off in the vegetable oils market. The benchmark palm oil contract for February delivery on the Bursa Malaysia Derivatives Exchange slid 46 ringgit, or 0.96%, to 4,769 ringgit ($1,069.28) a metric ton at the close. The contract declined 2.21% in the previous session. The sell-off in Chicago soyoil spilled over into the Dalian oils, which then contributed to a decline in Malaysian palm futures, said Paramalingam Supramaniam, director at Selangor-based brokerage firm Pelindung Bestari. “Speculations that the incoming Trump administration will impose a 40% tariff on China contributed to the sell-off in the vegetable oils market,” he said, adding that the tariffs could shift China’s purchase of US soybean and soyoil to Brazil and Argentina. Dalian’s most active soyoil contract fell 1.41%, while its palm oil contract shed ...