Loading…
Malaysian palm oil futures fell nearly 4% on Thursday to their lowest in almost five months, closing down 3% at 2,032 ringgit a tonne. It was a fifth straight session of declines and the sharpest daily drop since mid-December.
Weakness in U.S. soyoil on the Chicago Board of Trade and weak demand sentiment were cited as the causes.
Lower soyoil prices pull palm oil values down through substitution pricing, which lowers the cost of vegetable oil inputs for feed formulators. The move is a sentiment-driven decline rather than a supply shock.
thestar.com.myThe Star OnlineMay 2, 2019Not enough comparable past events yet for a historical read.
Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
Palm futures fell about 3% on May 2 to a near five-month low on weak US soyoil and soft demand, the sharpest daily drop in the window.
The 3% drop to a five-month low on weak US soyoil and soft demand was the sharpest single-day fall in the window, driving much of the 5-day decline through spillover from competing vegetable oils and sentiment.
