
Palm rises on stronger Dalian rivals but weak Chicago soyoil limits gains
The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange gained RM23, or 0.59 per cent, to RM3,940 (US$930.34) a metric ton in early trade.
Dalian's most-active soyoil contract rose 0.7 per cent, while its palm oil contract added 0.64 per cent. Soyoil prices on the Chicago Board of Trade were down 0.04 per cent.
Palm oil tracks price movements of rival edible oils, as it competes for a share of the global vegetable oils market.
Chicago soybean and corn futures eased, with both markets giving up some of last week's gains as focus turned on crucial talks due to start between top agricultural trading partners, the United States and China.
Oil prices held on to last week's gains early on Monday as investors waited for US-China trade talks to be held in London later in the day.
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
The ringgit, palm's currency of trade, weakened 0.24 per cent against the dollar, making the commodity slightly cheaper for buyers holding foreign currencies.
Free trade negotiations with the European Union, which have been ongoing for nine years, are expected to be concluded by the end of June, Indonesia said. Both parties have previously disagreed on EU trade rules for products with potential links to deforestation that could affect Indonesian palm oil.
Palm oil looks neutral in a narrow range of RM3,889 to RM3,925 per metric ton, and an escape could suggest a direction, Reuters technical analyst Wang Tao said.
Shares jumped and the dollar pared recent gains as Asian markets reacted to better-than-expected US jobs data ahead of talks in London aimed at mending a trade rift between the United States and China.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


New Straits Times
3 minutes ago
- New Straits Times
Clarifying independent directors' obligations
Independent directors are not full-time directors like executive directors. Independent directors run the risk of having incomplete and insufficient information. Due to this, their risks are higher. The Singapore appeal case Goh Jin Hian v Inter-Pacific Petroleum (IPP) both lays down and reaffirms some of the principles on independent directors' liability. Decisions made by Commonwealth countries have a persuasive effect on Malaysian court decisions, as Malaysia too is a Commonwealth country. What's more, the other commonwealth country is just across the causeway and once shared the same DNA as Malaysia. One can discern six principles as laid down by the Singapore Appellate Division. Duty of Skill, Care, and Diligence: Scope and Threshold A director must act with reasonable care and skill, considering their position and involvement in the company's affairs. A non-executive director' duty is less onerous than that of executive directors. This makes sense, as executive directors are involved full-time in management compared to non-executive directors, who are not involved in management. The Appellate Division reaffirmed this standard: a director is "a sentinel, but not a forensic investigator or sleuth" unless clear warning signs emerge. Notably, directors cannot be held to detect every fraud—they are not expected to conduct forensic-level scrutiny in the absence of explicit red flags. The duty of care principle's implication is that directors must be reasonably informed but are not investigative by default. Awareness of Business Activities: Directors Must Understand What They Are Guarding A director must be sufficiently informed about a company's significant operations to oversee and fulfil their duties properly. On the facts of the case, the court concluded that the director had breached this duty because Goh was unaware of a major business line used as a fraud vehicle. The High Court described his ignorance as "striking at the very heart of his duty of skill, care, and diligence." The principle of knowledge requirement implies being unaware of key business lines breaches the duty. Sheer honesty, integrity, and intelligence are not substitutes for knowledge of business. Red Flags and Triggering a Duty to Inquire Whether identified events constitute red flags warranting further inquiry or whether these did not amount to clear warning signs of fraud was for the courts to decide. A director's obligation to investigate arises only when distinct and immediate signs point to wrongdoing—not merely when unusual corporate events occur. The red flags principle's implication is that only clear, specific indicators of wrongdoing would trigger the need for further inquiry. Causation: Linking Breach to Loss Is the Claimant's Burden Even where a breach of duty is found (as with a director's ignorance of the business), there must be a causal link to the loss suffered. It must be shown to the courts, on evidence, that the director's awareness—or subsequent actions—would have identified the fraud and averted the loss. An independent director could not be faulted for not acting upon red flags, but more critically, the defendant failed to prove that his breach directly caused the loss. This confirms that in director-duty cases, establishing causation is essential before damages can follow. There must be causation—the breach must be directly linked to the preventable harm for damages to follow. Creditor Duty: When the Company Is Insolvent A director's duty may extend to creditors when the company becomes insolvent or is nearing insolvency. While the High Court initially held that Goh breached his creditor duty by allowing drawdowns during near-insolvency, the Appellate Division rejected this, noting two points. Firstly, IPP failed to prove the fraud would have been discovered or the loss avoided had Goh acted differently. Secondly, though knowledge of cargo trading was lacking, no clear wrongdoing could be attributed to Goh regarding approval of these drawdowns. Thus, without proven causation, even breaches of creditor duty do not automatically give rise to liability. Creditor duty applies in insolvency but still requires causal proof. Practical and Commercial Realities in Director Oversight The court stressed its recognition of practical and commercial limits, acknowledging that directors—especially non-executives—cannot be held liable for deep-seated, well-concealed frauds without tell-tale signs. The Singapore Institute of Directors called the judgement "welcome clarity" on the true scope of directors' duties, reassuring directors that oversight does not require forensic-level diligence in the absence of warning signs. Nonetheless, the decision does not absolve directors from responsibility; ignorance and inattention—in the face of evident wrongdoing—still carry liability. There are practical limits—directors aren't expected to perform audits or detective work when there are no warning signs.


New Straits Times
3 minutes ago
- New Straits Times
US trade deals raise regional stakes
KUALA LUMPUR: The US' new tariff deals with Japan and the Philippines, could heighten regional competition, but economists say Malaysia still holds firm in key sectors. Malaysia should act swiftly to maintain its edge, they added. On July 22, US President Donald Trump announced a deal with Japan that set tariffs on the nation's imports at 15 per cent, including for autos - by far the biggest component of the trade deficit between the countries. A separate agreement with the Philippines set a 19 per cent rate, the same level as Indonesia agreed to and a percentage point below Vietnam's 20 per cent baseline level, signalling that the bulk of Southeast Asia is likely to get a similar rate. In return, Indonesia removed tariffs on over 99 per cent of US products in exchange, while Japan commits to open markets for US autos, rice and agricultural goods, and to invest US$550 billion into the US. "The US-Japan and US-Philippines deals suggest Washington is rewarding bilateral agreements with tariff relief. "That puts pressure on countries without deals, like Malaysia, to secure similar access or risk being sidelined for future export-led foreign direct investment," SPI Asset Management managing partner Stephen Innes told Business Times. However, Innes emphasised that Malaysia still remains a strong contender in the regional trade landscape. "While sectors such as automotive and final-stage electronics might see shifting investment flows, Malaysia's established role in the semiconductors and E&E supply chain remains a key asset. "Malaysia still offers strong fundamentals (particularly in electronics) but in this environment, trade certainty is a competitive edge. Bilateral talks with the US should now be a priority," he said. Echoing similar sentiments, Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the risk of losing the nation's competitiveness is real. Therefore, product differentiation will be crucial for Malaysia to maintain its export strength. "Areas like Halal certification can help Malaysia carve a niche where our products and services remain highly sought after, despite the higher tariffs US consumers might have to pay," he said. On whether Malaysia could lose trade share to Japan or the Philippines in specific sectors like electronics and automotive, Afzanizam pointed out that Malaysia's position in the OSAT (outsourced semiconductor assembly and test) space is already strong. "Malaysia has established its footprint in the OSAT segment of electronics. Given our economies of scale, it may be quite difficult for other countries to replicate our capabilities," he said. Economist Dr Geoffrey Williams said the new tariff deals for Japan, Philippines and before this Indonesia and Vietnam, had put Malaysia at a disadvantage if the 25 per cent reciprocal tariff is maintained. "It will affect trade and FDI because companies will locate FDI to countries with lower US tariffs," he said. Williams said Malaysia's automotive exports are unlikely to be affected, but component manufacturing and certain E&E segments may see gradual changes in investor interest. "It may not affect semiconductors but could affect other electrical and electronics. It will not affect automotive because Malaysia does not export vehicles but it could affect components. "The lesson is clear, Malaysia must go zero-tariff and try to reduce non-tariff barriers to compete. There is only one week left," he said. From a positioning standpoint, Innes said with the Aug 1 tariff wall approaching fast, traders are conditioned to expect last-minute deals - headline-driven repricing that rewards speed over skepticism. "This one hits all the right spots including autos, agriculture, liquefied natural gas and even the promise of future investment. The US$550 billion figure Trump floated may be fuzzy, but the market does not care. "The trade tape was primed, and this was the spark," he added.


New Straits Times
33 minutes ago
- New Straits Times
Liverpool sign forward Ekitike from Eintracht Frankfurt
LONDON: Liverpool completed the signing of striker Hugo Ekitike from Eintracht Frankfurt on Wednesday for a reported £69 million (US$92 million) as the Premier League champions continued their summer spending spree. "The 23-year-old has successfully completed a medical and agreed personal terms with the Reds, allowing him to fly out to Hong Kong to join his new teammates on their pre-season tour of Asia later this week," Liverpool said in a statement. The deal taking the France Under-21 international to Anfield is set to push Liverpool's spending past £250m this summer. Liverpool switched their focus to Ekitike following Newcastle's refusal to sell Sweden striker Alexander Isak, who is valued at around £150 million by the Magpies. Newcastle and Manchester United were also interested in Ekitike, but Liverpool have won the race for one of Europe's hottest young stars. It is believed the Reds have agreed to pay a potential further £10 million in add-ons to sign Ekitike, whose overall price tag could reach £79 million. Ekitike scored 22 goals in 48 games in all competitions for Frankfurt last season after joining the Bundesliga club from Paris Saint-Germain. He was named in the Bundesliga team of the season as Frankfurt finished third in Germany last term. Liverpool have an opening in their forward line after Diogo Jota's recent death in a car crash in Spain. The Reds are also believed to be willing to sell Uruguay striker Darwin Nunez, while Colombia forward Luis Diaz has been the target of a rejected bid from Bayern Munich. Liverpool have already splashed out £116 million on Germany playmaker Florian Wirtz, as well as signing defenders Jeremie Frimpong and Milos Kerkez from Bayer Leverkusen and Bournemouth respectively. Georgia goalkeeper Giorgi Mamardashvili has also linked up with Arne Slot's side since the end of last season after agreeing his move from Valencia in 2024. Ekitike began his career with his hometown club Reims and had a brief loan spell in Denmark in 2021 before earning a move to PSG the following year. He struggled to make an impact in his first season in Paris alongside the likes of Lionel Messi, Kylian Mbappe and Neymar, but claimed a Ligue 1 winner's medal. His opportunities were again limited at the start of the 2023-24 campaign before he joined Frankfurt on loan. "Hugo has improved tremendously in his 18 months with us and has been a real asset to our team and the club as a whole on and off the pitch," said Eintracht sporting director Markus Krosche.