Palm oil opens lower on weak Dalian rivals, crude oil
The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange slid RM78, or 1.84 per cent, to RM4,167 a metric ton in early trade. The contract rose 0.35 per cent on Friday.
Dalian's most-active soyoil contract eased 0.05 per cent, while its palm oil contract shed 1.46 per cent. Soyoil prices on the Chicago Board of Trade (CBOT) rose 0.15 per cent.
Palm oil tracks the price movements of rival edible oils, as it competes for a share of the global vegetable oils market.
Oil prices extended declines after OPEC+ agreed to another large production hike in September, with concerns about a slowing economy in the US, the world's biggest oil user, adding to the pressure.
Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
The ringgit, the palm's currency of trade, strengthened 0.98 per cent against the dollar, making it more expensive for buyers holding foreign currencies.
Meanwhile, old trees and ageing farmers worsened the outlook for top palm oil exporters.
Palm oil looks neutral in RM4,211-RM4,273 per metric ton range and an escape could suggest a direction, Reuters technical analyst Wang Tao said.
Asian share markets followed Wall Street lower on Monday as fears for the US economy returned with a vengeance, spurring investors to price in an almost certain rate cut for September and undermining the dollar.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
New Straits Times
43 minutes ago
- New Straits Times
Profit taking pushes Bursa Malaysia down
KUALA LUMPUR: Bursa Malaysia closed lower on Monday as investors engaged in profit taking on selected heavyweights, capitalising on Friday's sharp rally to lock in short-term gains. At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) fell 6.37 points or 0.42 per cent to close at 1,526.98 from last Friday's close of 1,533.35. The benchmark index, which opened 3.07 points lower at 1,530.28, moved between 1,522.96 and 1,530.28 throughout the trading session. The broader market was negative, with decliners outpacing gainers 584 to 390, while 479 counters were unchanged, 1,026 untraded and 11 suspended. Turnover declined to 2.63 billion units worth RM1.94 billion from 3.16 billion units worth RM2.23 billion last Friday. UOB Kay Hian Wealth Advisors Sdn Bhd head of investment research Mohd Sedek Jantan said the FBM KLCI ended lower as investors capitalised on Friday's sharp rally to secure short-term profits. He said such consolidation is typical following strong upward momentum, particularly in an environment still adjusting to evolving global macroeconomic signals. Among FBM KLCI constituents, consumer-related stocks led the gainers, rebounding from previous session losses, signalling a rotation into domestically driven sectors. "Meanwhile, utilities and banking counters came under pressure, contributing to the index's modest pullback. "We interpret this rotation as reflective of selective repositioning rather than broad-based risk aversion," he added. Sedek maintains a constructive outlook, supported by optimism over the recently unveiled 13th Malaysia Plan, which sets the stage for long-term structural reforms. He said the reduction in US trade tariffs has eased near-term geopolitical uncertainty and supported a more stable macro backdrop for Malaysian equities. "From August through to next month, we expect the market to increasingly price in the prospect of a Federal Reserve rate cut at the upcoming FOMC meeting. "Friday's softer-than-expected US non-farm payrolls report has significantly shifted investor expectations, with markets now assigning an 80 per cent probability to a 25-basis-point rate cut in September. "Equity investors appear to be pinning their hopes on the Fed to provide further policy accommodation to sustain economic momentum," he added.
Focus Malaysia
an hour ago
- Focus Malaysia
EPF withdrawal reforms: 'Prioritise financial literacy and freedom of choice,' govt told
WHILE the aim of the restructuring of Employee Provident Fund (EPF) withdrawals into a monthly pension-style system for retirees is to ensure they do not exhaust their savings prematurely, the policy should be approached with caution. MCA information chief Chan Quin Er was responding to Prime Minister Datuk Seri Anwar Ibrahim's announcement while tabling the 13th Malaysia Plan (13MP) on July 31. Under the 13MP, the proposed mechanism seeks to ensure a steady post-retirement income by splitting EPF contributions into two components: one for lump-sum savings and another for monthly pension payouts. 'While the aim of this proposal is to ensure that retirees do not exhaust their savings prematurely and thereby safeguard their long-term financial security, particularly in light of the rising cost of living and increasing life expectancy, such a policy however, if implemented universally, should not be unilaterally imposed on existing contributors and must be approached with caution, particularly if it will be a policy applicable to new contributors,' she warned. Chan said a mandatory monthly pension mechanism may unintentionally disadvantage contributors who have immediate financial needs upon retirement. 'Many retirees may require access to a lump sum to settle outstanding debts like settling housing loans, pay for significant medical treatments such as organ transplants or cancer treatment, invest in caregiving services or support important life transitions such as relocating or helping their children financially,' she said. 'Denying access to the contributors' full savings without flexibility could place them in financial hardship, despite having contributed diligently throughout their working lives.' Enhancing financial literacy Continued Chan, enhancing financial literacy must be a parallel priority as a one-size-fits-all solution does not reflect the diverse financial circumstances and priorities of Malaysian workers. She said rather than enforcing a rigid withdrawal structure, the EPF and the government should significantly invest in financial education programmes that equip contributors with the knowledge and tools to plan their retirement wisely. 'Through targeted outreach, workshops and digital tools, EPF can help contributors evaluate the pros and cons of different withdrawal options based on their lifestyle, health, obligations, and retirement goals,' she reckoned. 'Empowering individuals with financial knowledge is a more sustainable way to prevent premature depletion of savings than restricting access to them. 'Therefore, MCA strongly urges the government and EPF to preserve contributors' freedom to choose between a lump sum withdrawal, discretionary figure to be arranged with EPF, monthly payments or a combination.' Describing retirement as a deeply personal journey, Chan said financial planning must reflect that reality, and contributors should be trusted to make informed decisions about their own futures with the support and guidance of comprehensive financial education and not through 'enforced restriction'. 'As RMK13 continues to be developed and refined, MCA reiterates our support for meaningful reforms that strengthen retirement security but not at the expense of personal agency and flexibility,' she added. ‒ Aug 4, 2025 Main image: Reuters/Lim Huey Teng
The Star
3 hours ago
- The Star
Malaysia agrees to boost tech, LNG purchases from U.S. as part of trade deal
Model of LNG tanker is seen in this illustration taken May 19, 2022. REUTERS/Dado Ruvic/Illustration/File Photo KUALA LUMPUR: Malaysia will spend up to US$150bil in the next five years to buy equipment from U.S. multinationals for its semiconductor, aerospace and data centre sectors, part of a deal with Washington to cut tariffs, its trade minister said on Monday. The United States announced last week that it would impose a 19% tariff on Malaysia starting from August 8, lower than a 25% levy threatened last month. State energy firm Petroliam Nasional Bhd (PETRONAS) will buy liquefied natural gas worth US$3.4bil a year, while Malaysia will commit to US$70bil in cross-border investments in the United States over the next five years to address the trade imbalance between the two countries, minister Tengku Datuk Seri Zafrul Abdul Aziz told parliament. The United States ran a goods trade deficit with Malaysia of US$24.8bil in 2024, government data showed. Tengku Zafrul said the two countries were finalising a joint statement covering the commitments made, following weeks of negotiations over the tariffs imposed by U.S. President Donald Trump's administration. "Despite expecting lower tariff rates, the ministry believes that these negotiations have succeeded in achieving a result that is reasonable with the offers made by Malaysia," Tengku Zafrul said. Other concessions by Malaysia include reducing or abolishing duties on 98.4% of U.S. imports, the easing of some non-tariff barriers, and the removal of a requirement for U.S. social media platforms and cloud service providers to contribute part of their Malaysian revenues to a state fund. Last week, Tengku Zafrul said Malaysia had secured tariff exemptions on its pharmaceutical products and semiconductors exported to the United States, and was seeking further cut-outs for commodities such as cocoa, rubber and palm oil. On Monday, however, he warned that semiconductor chips may still be subject to additional tariffs under U.S. laws based on national security reasons. "Therefore, we need to continue to be prepared for any possible additional tariffs imposed on the semiconductor industry," he said. - Reuters
