VEGOILS-Palm falls more than 3% as crude oil slumps on US-Iran ceasefire

KUALA LUMPUR, April 8 (Reuters) - Malaysian palm oil futures fell more than 3% on Wednesday as crude oil prices plunged following a U.S-Iran ceasefire deal, while weaker rival edible oils also weighed on the market.

The benchmark palm oil contract FCPOc3 for June delivery on the Bursa Malaysia Derivatives Exchange slid 147 ringgit, or 3.08%, to 4,618 ringgit a metric ton in early trade, extending losses to a third straight session.

FUNDAMENTALS

Oil fell below $100 per barrel after U.S. President Donald Trump said he had agreed to a two-week ceasefire with Iran that was subject to the immediate and safe reopening of the Strait of Hormuz. O/R

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

Dalian's most-active soyoil contract DBYcv1 fell 2.77%, while its palm oil contract DCPcv1 shed 3.76%. Soyoil prices on the Chicago Board of Trade BOcv1 were down 3.53%.

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

The ringgit MYR=, palm's currency of trade, strengthened 0.94% against the dollar, making the commodity more expensive for buyers holding foreign currencies.

European Union soybean imports for the 2025/26 season that began in July had reached 9.74 million metric tons by April 5, down 9% from the same period a year earlier, while palm oil imports were down 4% at 2.19 million tons, European Commission data showed.

Malaysia plans to expand its palm-based B20 biodiesel programme nationwide in phases, taking into account the price sensitivity of palm oil relative to petroleum prices, the plantation and commodities minister said.

Palm oil may revisit its recent low of 4,713 ringgit per ton, the ending point of a wave a from 4,919 ringgit, Reuters technical analyst Wang Tao said. TECH/C

MARKET NEWS

Oil prices dived, stocks surged and the dollar was knocked back on Wednesday as a two-week Middle East ceasefire sparked a relief rally, fuelled by hopes that oil and gas flows through the Strait of Hormuz could resume. MKTS/GLOB

DATA/EVENTS

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For a table on Malaysian physical palm oil prices, including refined oil, Reuters Terminal users can double click on or type OILS/MY01. To view freight rates from Peninsula Malaysia/Sumatra to China, India, Pakistan and Rotterdam, please key in OILS/ASIA2 and press enter, or double click between the brackets.  Reuters Terminal users can see cash and futures edible oil prices by double clicking on the codes in the brackets: To go to the next page in the same chain, hit F12. To go back, hit F11. Vegetable oils                       OILS/ASIA1 Malaysian palm oil exports           SGSPALM1   CBOT soyoil futures                  0#BO:      CBOT soybean futures                 0#S:       Indian solvent                       SOLVENT01  Dalian Commodity Exchange            DC/MENU   Dalian soyoil futures                0#DBY:   Dalian refined palm oil futures      0#DCP:   Zhengzhou rapeseed oil               0#COI:   European edible oil prices/trades    OILS/E