KUALA LUMPUR: Malaysian palm oil futures opened lower on Monday, snapping a two-session rise as weaker Chicago soyoil weighed on the market, although firmer prices of crude oil capped the decline.

The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange shed RM34, or 0.7 per cent, to RM4,805 (US$1,192.31) a metric ton in early trade.

Oil prices climbed on continuing fears of supply losses from disruptions to shipping in the key Middle East producing region caused by the US-Israeli war with Iran.

Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.

Soyoil prices on the Chicago Board of Trade were down 0.15 per cent. The Dalian Commodity Exchange was closed for a public holiday.

Palm oil tracks price movements of rival edible oils as it competes for a share of the global vegetable oils market.

Malaysia’s palm oil inventories probably dropped in March by the most in three years to stand at their lowest since last July, as a surge in exports more than offset a modest output increase, a Reuters survey showed.

The ringgit, palm’s currency of trade, was unchanged against the US dollar.

Oil prices rose, bonds fell and stocks were mixed at the start of trading in Asia on Monday as US President Donald Trump vowed “hell” if Tehran did not meet his deadline to reopen the key waterway of the Strait of Hormuz.

Source : NST