Malaysian Palm Oil Prices Snap Winning Streak Amid Soyoil and Crude Drop

Malaysian palm oil futures declined on Monday after a five-session winning streak. The benchmark November contract on Bursa Malaysia Derivatives Exchange fell by 0.56% to 4,990 ringgit per metric ton in early trade.

The drop was linked to the decline of soyoil and crude oil prices. Chicago Board of Trade soyoil decreased by 2.43%, while Dalian soyoil dropped by 0.37%. In contrast, Dalian palm oil edged up by 0.06%, which helped limit the decrease in Malaysia.

The connection between these commodities is due to refiners and food companies switching between vegetable oils based on relative prices. Crude oil also slid more than $1 a barrel as traders booked profits ahead of an expected US update on Iran sanctions, further reducing interest in palm as a biodiesel input.