KUALA LUMPUR: Malaysian palm oil futures opened higher for a third straight session on Wednesday, buoyed by stronger rival oils and a weaker ringgit.
The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange gained 63 ringgit, or 1.44%, to 4,449 ringgit ($1,025.82) a metric ton in early trade.
Palm oil surges more than 2pc on stronger rival oils
The contract gained 3.08% in the last two consecutive sessions.
Fundamentals
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Dalian’s most-active soyoil contract added 2.01%, while its palm oil contract gained 2.58%. Soyoil prices on the Chicago Board of Trade were up 0.43%.
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Palm oil tracks prices of rival edible oils as it competes for a share of the global vegetable oils market.
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The ringgit, palm’s currency of trade, weakened 0.32% against the US dollar, making the commodity cheaper for buyers holding foreign currencies.
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Oil prices edged lower after industry data showed US crude inventories had swollen more than expected, while the market kept watch on diplomatic efforts in the Middle East as Israel continued attacks on Gaza and Lebanon.
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Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
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European Union’s soybean imports in the 2024-25 season, which started in July, reached 3.73 million metric tons by Oct. 20, up 7% from a year ago, while EU palm oil imports were down 17% at 0.98 million tons, data published by the European Commission showed.
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