Palm slips on lower ringgit; stronger crude oil caps downside
The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange lost RM18, or 0.45 per cent, to RM3,948 (US$896.25) a metric ton in early trade.
FUNDAMENTALS
The ringgit, palm's currency of trade, weakened 0.39 per cent against the dollar, making the commodity cheaper for buyers holding foreign currencies.
Oil prices rose almost 1 per cent in early trade on Wednesday, extending the prior day's gains as investors weighed a fresh round of sanctions on Iran, a drop in US crude stocks and a softer tone from Donald Trump on the Federal Reserve.
Higher crude oil prices make palm a more attractive option for biodiesel feedstock.
Dalian's most-active soyoil contract rose 0.46 per cent, while its palm oil contract added 0.77 per cent. Soyoil prices on the Chicago Board of Trade (CBOT) were up 0.33 per cent.
Palm oil tracks the price movements of rival edible oils as it competes for a share of the global vegetable oils market.
Indonesia's crude and refined palm oil exports dipped nearly 2 per cent month-on-month in March as local consumption rose due to Ramadan. However, shipments remained at a four-year high.
Palm oil demand from top global buyers China and India is expected to increase as the vegetable oil is now reasonably priced compared to its rivals, the Malaysian Palm Oil Council said on Tuesday.
Palm oil may retest support at RM3,875 per metric ton, as the downtrend is considered steady, Reuters technical analyst Wang Tao said.
Stock markets were enjoying a much-needed relief rally in Asia on Wednesday after President Donald Trump said he had no plans to fire the head of the Federal Reserve, and hinted at lower tariffs for China.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
New Straits Times
6 minutes ago
- New Straits Times
Malaysia raises Sept crude palm oil reference price, lifting duty to 10pct
KUALA LUMPUR: Malaysia has raised its September crude palm oil reference price, a change that increases the export duty rate to 10 per cent, a circular on the Malaysian Palm Oil Board website showed on Wednesday. The world's second-largest palm exporter calculated a reference price of RM4,053.43 (US$962.12) per metric ton for September. The August reference price was RM3,864.12 a ton, and incurred a duty of 9 per cent. The export tax structure starts at 3 per cent for crude palm oil in a RM2,250 to RM2,400 per-ton range. The maximum tax rate is set at 10 per cent when prices exceed RM4,050 a ton.
Barnama
10 minutes ago
- Barnama
Brazil Presents Aid Package For Businesses Impacted By US Tariffs
President of the Chamber of Deputies Hugo Motta, Brazil's Vice President Geraldo Alckmin, Brazil's President Luiz Inacio Lula da Silva, President of the Federal Senate of Brazil Davi Alcolumbre and Brazil's Foreign Minister Mauro Vieira attend a ceremony to sign a provisional measure establishing an initial set of actions to mitigate the economic impact due to U.S. President Donald Trump's decision to raise import tariffs on Brazilian products by up to 50%, at the Planalto Palace, in Brasilia, Brazil, August 13, 2025. REUTERS/Adriano Machado RIO DE JANEIRO, Aug 14 (Bernama-dpa) -- The Brazilian government on Wednesday presented an aid package worth billions of dollars for companies affected by US tariffs, reported German press agency (dpa). "Brazil and the world are witnesses that this situation, which we consider to be true blackmail, was provoked by those who tried to abolish the democratic rule of law and now answer for their crimes before the law and justice," said Institutional Relations Minister Gleisi Hoffmann. The core of the package is a credit line of 30 billion reais (US$5.5 billion), the granting of which is linked to the preservation of jobs. Additionally, export credits will be granted and tax payments for particularly affected companies will be postponed. bootstrap slideshow President Luiz Inácio Lula da Silva signed the measure into provisional law, which must be approved by Congress within 120 days to remain in force. Lula stressed during the package's announcement in Brasilia that his government was "not announcing reciprocity measures". 'We don't want, in first instance, to do anything that could worsen our relations," he said, adding that his government was instead focussing on greater diversification of export markets and was negotiating alternative sales opportunities with partners such as India, China and Russia. US President Donald Trump last week imposed 50 per cent import duties on a wide range of Brazilian products including meat and coffee, though key exports such as orange juice, civilian aircraft, oil and fertilisers are exempt. The US administration has said the tariffs were in part triggered by the prosecution of former Brazilian president Jair Bolsonaro. Washington argues that Brazil's actions threaten US national security, foreign policy and economic interests. Some view the move as an attempt by the US to exert political pressure in favour of the right-wing former president.
Free Malaysia Today
36 minutes ago
- Free Malaysia Today
S&P 500, Nasdaq futures at record highs on September rate cut expectations
Dow E-minis were up 0.23%, S&P 500 E-minis were up 0.17% and Nasdaq 100 E-minis were up 0.23%. (EPA Images pic) NEW YORK : US futures tracking the S&P 500 and the Nasdaq indexes were pinned at record highs today, buoyed by increasing confidence that the Federal Reserve (Fed) could restart its monetary policy easing cycle next month. Signs that US taxes on imports have not fully filtered into headline consumer prices sparked a relief rally on Wall Street in the previous session, with the benchmark S&P 500 marking its first record high close in two weeks. Despite core inflation marking its biggest jump since the start of the year, investors factored in recent weakness in the job market and a shake-up at the Fed as they leaned in favour of a potential dovish move by the central bank in September. Interest rate futures now reflect a 98% chance of a 25 basis points interest rate cut, according to data compiled by LSEG, compared with 88.8% yesterday. The central bank last lowered borrowing costs in December. 'The US inflation reading was in line with market expectations, and the downside risks in the labour market are likely to outweigh inflation concerns,' said Mark Haefele, CIO at UBS Global Wealth Management. 'Our base case remains that the Fed will resume rate cuts at the September meeting and continue cutting for a total of 100 bps,' Haefele said. At 5.35am, Dow E-minis were up 104 points, or 0.23%, S&P 500 E-minis were up 11.5 points, or 0.17% and Nasdaq 100 E-minis were up 54.25 points, or 0.23%. The CBOE volatility index, popularly referred to as Wall Street's fear gauge, dropped to 14.55 – its lowest since January. Rate-sensitive banking stocks such as Bank of America and Citigroup were marginally higher in premarket trading after the broader sector logged its biggest daily rise in three months yesterday. Analysts said a steepening yield curve following the inflation report could help bank earnings as lenders could borrow cheap and lend at a higher rate. Nomura was the first among brokerages to bring forward its easing forecast after the data and now expects the Fed to ease interest rates by 25 basis points in September. Later in the day, investors will weigh in on the remarks of a number of policymakers, especially Chicago Fed president Austan Goolsbee – a federal open market committee voting member this year. Earnings are also in focus. CoreWeave, which is backed by Nvidia, lost 9.2% after the AI data centre operator reported a bigger-than-expected net loss. Investors were also keeping an eye on developments on the China revenue-sharing deal the US government signed with chip companies such as Nvidia and Advanced Micro Devices that the White House said could be expanded to other companies in the sector. Venture Global gained 9.3% after the liquefied natural gas (LNG) major won a legal battle against Shell over its failure to deliver LNG under long-term contracts starting in 2023. Crude prices traded around US$60 per barrel ahead of a virtual meeting between Donald Trump and European leaders on the Russo-Ukraine conflict, two days before the US president meets Russian President Vladimir Putin.
