Palm rises on firmer crude, rival oil prices

KUALA LUMPUR: Malaysian palm oil futures rose on Thursday, posting gains for the second straight session, as firmer crude oil prices and rival edible oils supported the market.

The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange rose 39 ringgit, or 0.87%, to 4,535 ringgit ($1,140) a metric ton at the close.

The market traded higher in unison with energy prices, Chinese vegetable oil futures and Chicago soyoil, said Anilkumar Bagani, commodity research head at Mumbai-based brokerage Sunvin Group.

“Market chatter surrounding the super El Nino phenomenon has made traders cautious. This is seen as supportive for palm oil prices at the moment,” he said.

Dalian’s most-active soyoil contract rose 1.07%, while its palm oil contract added 0.96%. Soyoil prices on the Chicago Board of Trade were up 0.54%.

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

Oil prices jumped more than 2% after Iran’s Revolutionary Guards said they had targeted a U.S. airbase in response to an earlier U.S. attack in the port city of Bandar Abbas.

Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.

The ringgit, palm’s currency of trade, weakened 0.38% against the dollar, making the commodity cheaper for buyers holding foreign currencies.

European Union soybean imports for the 2025/26 season that began in July had reached 11.95 million tons by May 24, down 8% from a year earlier, while palm oil imports were down 4% to 2.55 million tons, European Commission data showed.

Indonesia’s finance minister said Wilmar International and the Musim Mas Group are among the palm oil companies now being probed for suspected “under-invoicing” of exports.