Palm Oil Prices Plunge Amid Weaker Soybean Oil, Stronger Ringgit

Palm oil futures in Malaysia took a hit on Thursday, falling over 1% as traders kept their eyes on the upcoming August supply-and-demand report from the Malaysian Palm Oil Board (MPOB).

The benchmark November palm oil contract on Bursa Malaysia Derivatives dropped to 4,900 ringgit a metric ton, marking a three-session slide. Weaker soyoil prices and a stronger ringgit were cited as immediate headwinds by traders.

However, the impact of rising energy prices could potentially steady palm oil prices near 4,900 ringgit even if soyoil continues to slip. With Brent crude above $100 a barrel, biodiesel producers may be able to justify paying more for feedstocks due to the competition with diesel at the pump.