Malaysian palm oil futures fall on the heels of European rapeseed prices

Published 2023년 3월 20일

Tridge summary

Malaysian palm oil futures have experienced a decline for three consecutive sessions, reaching their lowest point in over five weeks. This drop is linked to the weakness in other vegetable oils such as European rapeseed and Black Sea sunflower oil, as well as the strengthening ringgit. The June delivery contract for palm oil on the Bursa Malaysian Derivatives Exchange fell by 1.53% to RM3,860 a tonne. The falling prices are also influenced by concerns in the financial sector, including the potential for a global banking crisis following issues with Credit Suisse.

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Original content

Malaysian palm oil futures fell for a third straight session on Monday to their lowest level in more than five weeks, tracking weakness in rival vegetable oils and a strengthening ringgit. The underlying palm oil contract for June delivery on the Bursa Malaysian Derivatives Exchange lost RM60, or 1.53%, to RM3,860 ($861.41) a tonne by noon. “The palm on Bursa Malaysia Derivatives has been under pressure from sharply cheaper European rapeseed, which is now trading at a rare discount for the first time in 25 years compared to a CPO in the Rotterdam market,” said Anilkumar Bagani, head of research at Mumbai-based vegetable oil broker Sunvin Group. reports Reuters. “The decline in prices for Black Sea sunflower oil, which have fallen by almost 15% this month, has added to the bearish mood,” he said. Rapeseed futures hit a two-year low on Friday as weakness in the respective vegetable oil and crude oil markets added pressure from abundant supply of rapeseed in Europe. The contract fell ...

Source: Oilworld