Palm oil headed for its lowest close in two weeks on intensifying competition with rival
soybean oil and as weaker prices of petroleum reduced the tropical oil’s biofuel appeal.
Some buyers are turning to soybean oil, which is now trading almost on par with palm oil,
said an analyst. Soybean oil’s premium over palm oil has become almost zero now,
compared with a high of $565 in the past 12 months, partly due to a 15% slump in soyoil
on the Chicago Board of Trade this year. Benchmark palm oil prices have gained 4.4% so
far in 2024 in Kuala Lumpur. Weaker petroleum prices are also putting pressure on the
market, he said. Crude oil is set for its deepest weekly loss in almost a year on worries
about weaker demand and ample supplies. Prices have been falling since early July on
concerns about demand from key consumers, particularly China.
