Malaysian palm oil price falls more than 1% on US-China trade war

  • Business
  • Thursday, 09 May 2019

Malaysian palm oil futures fell more than 1 percent on Friday, retreating from the previous session's seven-month high, hindered by a stronger ringgit and losses in U.S. soyoil on the Chicago Board of Trade.

KUALA LUMPUR: Malaysian palm oil futures fell more than 1 percent in late trade on Thursday, charting a second session of losses, as worries over U.S.-China trade relations weighed on prices.

The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange was last down 1.6 percent at 2,005 ringgit ($482.90) a tonne at the close of trade, its sharpest daily fall in a week.

"The market is still carrying the worries of the trade war," said a Kuala Lumpur-based trader.

Global stocks and commodities markets were hit earlier this week after U.S. president Donald Trump threatened to impose additional tariffs on Chinese imports.

The U.S. announced that tariffs on $200 billion worth of Chinese goods would increase to 25 percent from 10 percent on Friday, right in the middle of two days of meetings between Chinese Vice Premier Liu He and Trump's top trade officials in Washington.

On Friday, the Malaysian Palm Oil Board is scheduled to release official data reporting on April end-stocks, production and exports after 0430 GMT.

A Reuters poll had forecast that Malaysia's production in April would fall to 1.64 million tonnes, down 1.9 percent from March. Stocks are also seen declining 5 percent to 2.77 million ringgit.

In other related oils, the Chicago July soybean oil contract fell 0.7 percent, while the May soyoil contract on the Dalian Commodity Exchange was trading flat.

Meanwhile, the Dalian May palm oil contract slipped 0.3 percent.

Palm oil prices are affected by movements in soyoil, with which it competes for global market share. - Reuters

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palm oil , markets , Bursa , futures , derivatives , price , stocks , soyoil , China , US , trade , war ,


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