Palm Oil, Soybean Oil Prices Plummet Amid Biofuel Demand Uncertainty

Vegetable oil futures ended the week under pressure on July 31, as crude palm oil (CPO) contracts were weighed down by profit-taking and weakness in related oils. CME soybean oil futures extended their decline for a fifth consecutive session amid concerns over future biofuel demand.

The October CPO contract on the Bursa Malaysia Derivatives fell by 0.88% to close at $1,137 per tonne, with its intraday high just 3 ringgit above the previous day's settlement of $4,683 per tonne. The third month contract has fallen by 1.69% from the previous Friday's settlement of $4,722 per tonne.

Persistent weakness in related oils, particularly soybean oil, kept pressure on palm oil prices. Crude oil futures traded in both directions on July 31, with both WTI and Brent crude slightly higher at time of BMD close after trading lower during Asia morning hours.