Malaysian palm oil futures fell on Friday, weighed down by weaker Chicago soyoil and crude oil prices as U.S. President Donald Trump’s reciprocal tariffs fuelled uncertainty around global trade and stoked fears of inflation and growth slowdown.
The benchmark palm oil contract 
FCPO1! for June delivery on the Bursa Malaysia Derivatives Exchange slid 126 ringgit, or 2.81%, to 4,363 ringgit ($988.00) a metric ton at the midday break.
The contract fell 1.27% so far this week.
Crude palm oil futures declined due to uncertainty about global trade following the tariff announcement by Trump, a Kuala Lumpur-based trader said.
Palm oil prices fell tracking a decline in crude oil and soybean oil, the trader said.
“Liquidations were heavy last night and have continued through midday today. While the physical market remains strong, futures are trading on a weaker note,” the trader added.
Soyoil prices on the Chicago Board of Trade (CBOT) 
ZL1! eased 0.4%. The Dalian Commodity Exchange is closed for the Qingming Festival and will reopen on Monday.
Palm oil tracks price movements of rival edible oils as it competes for a share of the global vegetable oils market.
Oil eased further in early Asian trade and was set for the worst week in months over fresh U.S. tariffs, further fuelling concerns over a global trade war that could weigh on oil demand. O/R
Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
Several countries have threatened to ratchet up a trade war with the U.S. as Trump’s sweeping tariffs ignited fears of steep price rises in the world’s largest consumer market.
The ringgit 
USDMYR, palm’s currency of trade, strengthened 0.54% against the U.S. dollar, making the commodity more expensive for buyers holding foreign currencies.
Palm oil may retest support at 4,347 ringgit per metric ton, a break below which could trigger a fall into the 4,266-4,303 ringgit range, Reuters technical analyst Wang Tao said. TECH/C
Thomson Reuterscpo
($1 = 4.4160 ringgit)