Soybean oil has become cheaper than palm oil after Argentina temporarily lifted duties

Malaysian palm oil futures fell more than 2% on Tuesday, hitting their lowest level since August 8, after Argentina, the world’s largest soybean oil exporter, temporarily lifted its export duty, making soybean oil cheaper than palm oil. Palm oil closed lower. Phillip Capital analysts wrote in a note that prices were likely pressured by falling prices for competing soybean oil. Furthermore, according to Phillip Nova, recent pressure from the ringgit likely impacted investor optimism. Benchmark palm oil contracts for December delivery on the Bursa Malaysia Derivatives Exchange (BME) fell 102 ringgit, or 2.3%, to close at 4,341 ringgit (US$1,034.56) per metric tonne, after rising 0.41% in the previous session. According to Paramalingam Supramaniam, director of Selangor-based brokerage Pelindung Bestari, the news about Argentina triggered a massive sell-off in the Chicago and Dalian markets, which spread to the palm oil market. On Monday, Argentina temporarily suspended export duties ...