VEGOILS-Palm hits two-week low as ceasefire drags crude oil down

KUALA LUMPUR, April 8 (Reuters) - Malaysian palm oil futures slid more than 3% on Wednesday, hitting their lowest in two weeks, as a sharp drop in crude oil prices following a U.S-Iran ceasefire deal weighed on the market.

The benchmark palm oil contract FCPOc3 for June delivery on the Bursa Malaysia Derivatives Exchange closed 179 ringgit lower, or down 3.76%, at 4,586 ringgit ($1,154.00) a metric ton, the lowest since March 26.

Palm oil markets are currently tracking developments in the Middle East conflict closely, mirroring movements in crude oil prices, said Sandeep Singh, director of The Farm Trade, a Kuala Lumpur-based consulting and trading company.

Oil fell below $100 a barrel after U.S. President Donald Trump said he had agreed to a two-week ceasefire with Iran, 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.

Singh said palm oil prices were expected to find support at about 4,500 ringgit, underpinned by a possible B20 biodiesel mandate in Malaysia and lower inventory levels.

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.

Dalian's most-active soyoil contract DBYcv1 fell 3.07%, while its palm oil contract DCPcv1 shed 4.36%. Soyoil prices on the Chicago Board of Trade BOcv1 were down 3.28%.

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 1.34% against the dollar, making the commodity more expensive for buyers holding foreign currencies.

Indonesia's energy ministry has issued a ministerial decree setting the timeline for the implementation of its biofuel blending mandate, an official said, as it tries meet its energy transition and self-sufficiency targets.

($1 = 3.9740 ringgit)

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