KUALA LUMPUR: Malaysian palm oil futures inched higher on Wednesday for the third consecutive session, tracking strength in rival Dalian oils, although weaker Chicago soyoil prices limited its gains.
Palm rises on firmer soyoil prices, expected output decline
The benchmark palm oil contract for February delivery on the Bursa Malaysia Derivatives Exchange gained 13 ringgit, or 0.27%, to 4,748 ringgit ($1,065.29) a metric ton in early trade.
Fundamentals
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Dalian’s most-active soyoil contract rose 0.07%, while its palm oil contract added 0.43%. Soyoil prices on the Chicago Board of Trade were down 0.28%.
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Palm oil tracks price movements of rival edible oils, as they compete for a share of the global vegetable oils market.
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Oil prices steadied in early trade, with markets assessing the potential impact of a ceasefire deal between Israel and Hezbollah, and ahead of Sunday’s OPEC+ meeting.
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Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
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The ringgit, palm’s currency of trade, weakened 0.04% against the dollar, making the commodity cheaper for buyers holding foreign currencies.
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European Union soybean imports in the 2024/25 season that started in July had reached 4.95 million metric tons by Nov. 24, up 7% from 4.62 million tons a year earlier, while EU palm oil imports totalled 1.26 million tons, down 18% from 1.54 million tons, data published by the European Commission showed.
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Palm oil may test resistance at 4,780 ringgit per metric ton, a break above which could lead to a gain into the 4,816-4,869 ringgit range, Reuters technical analyst Wang Tao said.
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