Palm oil ends lower as Middle East tensions weigh
The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange was down 20 ringgit, or 0.5%, at 3,963 ringgit ($935.77) a metric ton at the close.
Cargo surveyors estimated that exports of Malaysian palm oil products for June 1-25 rose between 6.6% and 6.8%, compared with the same period a month ago.
However, the market remains jittery due to uncertainty over the outcome of the Middle East conflict despite the strong export data, said Paramalingam Supramaniam, director at Selangor-based brokerage Pelindung Bestari.
Dalian's most active soyoil contract fell 0.25%, while its palm oil contract lost 0.36%. Soyoil prices on the Chicago Board of Trade (CBOT) shed 0.06%.
Palm oil tracks the price movements of rival edible oils as it competes for a share of the global vegetable oils market.
Oil prices edged up as investors assessed the stability of a ceasefire between Iran and Israel, while support also came from data that showed US demand was relatively strong.
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
The ringgit, palm's currency of trade, strengthened 0.12% against the dollar, making the commodity slightly more expensive for buyers holding foreign currencies.
European Union soybean imports in the 2024-25 season that began last July reached 13.79 million metric tons by June 22, compared with year-ago 12.89 million tons, data published by the European Commission showed.
The EU palm oil imports for the same period stood at 2.76 million tons compared with 41 million tons a year earlier.
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