Malaysian palm oil falls
Malaysian palm oil futures fell 0.6% to 4,490 ringgit/ton on Thursday, ending a four-day rally due to profit-taking triggered by US tariffs announced by President Trump. Despite the drop, analyst Paramalingam Supramaniam expects resilient prices in Q2 amid rising demand and output. Palm oil followed declines in global edible oils and crude markets over trade war concerns.
KUALA LUMPUR: Malaysian palm oil futures slipped on Thursday, snapping a four-session rally, as profit-taking weighed down the market following US President Donald Trump’s reciprocal tariffs on trade partners.
The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange slid 27 ringgit, or 0.6%, to 4,490 ringgit ($1,011.26) a metric ton at the close. Crude palm oil futures declined as Trump’s fresh tariffs triggered profit-taking, said Paramalingam Supramaniam, director at Selangor-based brokerage Pelindung Bestari.
However, Paramalingam anticipates prices will remain relatively resilient in the second quarter of the year as demand picks up in April and May alongside increasing production, which is expected to maintain positive market sentiment. Dalian’s most-active soyoil contract fell 1.18%, while its palm oil contract shed 0.71%. Soyoil prices on the Chicago Board of Trade (CBOT) fell 2.16%.
Palm oil tracks the prices of rival edible oils as it competes for a share of the global vegetable oils market. Oil prices fell by over 3% after US President Donald Trump announced sweeping new tariffs which investors worry will enflame a global trade war that will curtail economic growth and limit fuel demand.
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Source : Business Recorder
