KUALA LUMPUR: Malaysian palm oil futures opened lower for a second straight session on Tuesday, weighed down by weaker rival oils and crude oil prices.

The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange slid RM27, or 0.58 per cent, to RM4,646 (US$1,137.61) a metric ton in early trade.

Dalian’s most-active soyoil contract fell 1.28 per cent, while its palm oil contract shed 1.2 per cent. Soyoil prices on the Chicago Board of Trade were down 0.82 per cent.

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

Oil prices fell 1 per cent as market participants continued to weigh a pause in US strikes on Iran, which has raised hope of a diplomatic solution to their conflict and the normalisation of Middle East energy flows.

Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.

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

The US Department of Agriculture lowered its condition ratings for the nation’s corn and soybeans by more than expected in a weekly report on Monday following a week of hot and dry weather that stressed crops.

Palm oil may fall into a range of RM4,625-RM4,642 ringgit per metric ton, as it has broken a support at RM4,665, Reuters technical analyst Wang Tao said.

Asian markets fell on Tuesday led by chipmakers on unease about the massive funding demands of the AI boom, while a slide in oil prices did relatively little to lift bonds and left traders nervous about US rate hikes, maybe as soon as this week.

Source : NST