KUALA LUMPUR: Malaysian palm oil futures fell on Monday for the sixth straight session, as weakness in soyoil and crude oil and a stronger ringgit pressured the market, with US tariff concerns also fuelling the downturn.
The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange slid 46 ringgit, or 1.16 per cent, to RM3,929 ($895.80) a metric ton at the midday break.
Crude palm oil futures eased on weaker soybean oil and crude oil, reflecting the negative global sentiment stemming from the U.S tariff policies, said David Ng, a proprietary trader at Kuala Lumpur-based trading firm Iceberg X Sdn Bhd.
"A stronger ringgit is also seen as a weighing factor on prices."
Dalian's most-active soyoil contract fell 0.41 per cent, while its palm oil contract shed 1.4 per cent. Soyoil prices on the Chicago Board of Trade dropped 0.12 per cent.
Palm oil tracks the price movements of rival edible oils as it competes for a share of the global vegetable oils market.
Cargo surveyor Intertek Testing Services estimated exports of Malaysian palm oil products to have risen 11.9 per cent during April 1-20, while AmSpec Agri Malaysia's estimate will be released later in the day.
Oil fell more than 1.5 per cent as investors once again focused on concerns that US tariffs on trading partners will create economic headwinds that will reduce fuel demand growth.
Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
The ringgit, palm's currency of trade, strengthened 0.54 per cent against the dollar, making the commodity more expensive for buyers holding foreign currencies.
Palm oil may keep falling into the RM3,875-RM3,929 per metric ton range as suggested by a projection analysis, Reuters technical analyst Wang Tao said.
