Cash prices for palm oil and refined palm oil products edged lower on Wednesday June 5, tracking marginal losses in benchmark futures on the Bursa Malaysia Exchange.

In the US, palm oil has been losing market share to cheaper animal fats, such as tallow. Lower tallow prices compared with palm oil values have led to livestock reformulations in the US feed industry.

On Wednesday, Fastmarkets’ price assessment of palm oil, RBD, fob US Gulf was $0.4800-0.4850 per lb, unchanged from Tuesday’s levels. Fastmarkets’ price assessment of palm olein, RBD, fob US Gulf was $0.4825-0.4875 per lb, also steady from the prior session.

Palm oil futures and cash prices edged downward on light profit-taking and position adjustment, while market participants awaited the release of key palm oil supply and demand figures for the full month of May for Malaysia. Data from the Malaysian Palm Oil Association (MPOA) is slated for release sometime this week.

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