Malaysian palm oil futures fell to a nine-month low on Monday, as weakness in crude and rival oils on the Dalian exchange outweighed better April export volumes.
The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange slid 42 ringgit, or 2.02%, to 2,033 ringgit ($466.82) per tonne by 0240 GMT.
Earlier in the session, it fell to its lowest since July 25, 2019 of 2,022 ringgit. It lost 7.2% last week, its biggest weekly drop in eight, aftera historic crude oil rout made palm oil less attractive as a biodiesel feedstock.
Palm oil exports from the world’s second-largest producer, Malaysia, rose 8.8% in the April 1-25 period from the month before, according to AmSpec Agri Malaysia.
Oil prices fell on signs that worldwide oil storage is filling rapidly, raising concerns that production cuts will not be fast enough to catch up with the collapse in demand from the coronavirus pandemic.
Dalian’s most-active soyoil and palm oil contracts declined 1.7% each. Soyoil prices on the Chicago Board of Trade were up 0.2%.