Palm extends gains on strong soyoil, export demand, EU law delay

KUALA LUMPUR: Malaysian palm oil futures climbed for a second straight session on Thursday, supported by stronger soyoil prices, robust exports and the delay of the European Union’s anti deforestation law for another year.

The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange gained 61 ringgit, or 1.39%, to 4,440 ringgit ($1,055.13) a metric ton at the close.

Crude palm oil futures traded higher on stronger soyoil prices and export performance, said David Ng, a proprietary trader at Kuala Lumpur-based trading firm Iceberg X Sdn Bhd.

Cargo surveyors estimated that exports of Malaysian palm oil products for September 1-25 rose between 11.3% and 12.9% compared with the same period a month earlier.

The delay of the European Union Deforestation Regulation for another year also likely contributed to the positive market sentiment, Ng added.

The European Union on Tuesday said it will delay launching its anti-deforestation law for a second time, postponing the ban on imports of commodities such as palm oil linked to forest destruction for another year.

Dalian’s most-active soyoil contract rose 1.19%, while its palm oil contract added 1.59%. Soyoil prices on the Chicago Board of Trade were up 0.98%.

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

Oil prices eased in Asian trade on Thursday, retreating from a seven-week high reached in the prior session as some investors withdrew funds due to uncertainty around the supply-demand outlook.

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

The ringgit palm’s currency of trade, weakened 0.07% against the dollar, making the commodity slightly cheaper for buyers holding foreign currencies.

Indonesia’s palm oil exports to the European Union are projected to increase in 2026, supported by a bilateral trade pact and the postponing of the anti-deforestation law, the head of an industry body said.