Palm extends gains on export hopes; weak soyoil, crude oil weigh

KUALA LUMPUR: Malaysian palm oil futures edged higher on Wednesday for a second consecutive session, on expectations of robust exports to key destination markets, though softer soyoil and crude oil prices limited the gains.

The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange gained 14 ringgit, or 0.3%, to 4,710 ringgit ($1,151.87) a metric ton by the midday break. The contract rose 1.45% on Tuesday.

Crude palm oil futures traded higher on expectations of strong export performance, but weaker soybean oil and crude oil prices may continue to weigh on market sentiment, said David Ng, a proprietary trader at Kuala Lumpur-based trading firm Iceberg X Sdn Bhd.

Palm oil tracks the price movements of rival edible oils, as it competes for a share of the global vegetable oils market, while weaker crude oil futures make palm a less attractive option for biodiesel feedstock.

India’s edible oil imports climbed to their highest level in 10 months in July as refiners increased purchases of palm oil and soyoil to replenish inventories ahead of the local festival season amid tightening domestic supplies, five dealers said.

Dalian’s most-active soyoil contract fell 0.18%, while its palm oil contract added 1.13%. Soyoil prices on the Chicago Board of Trade were down 0.07%.

Crude oil extended declines after steep falls in the previous two trading sessions, as investors waited to see if efforts to end the Iran war and restore traffic through the blockaded Strait of Hormuz were making progress.

The ringgit, palm’s currency of trade, weakened 0.1% against the dollar, making the commodity slightly cheaper for buyers holding foreign currencies.

European Union soybean imports for the 2026/27 season that began on July 1 reached 0.66 million metric tons by August 2, down 50% from the same period a year earlier, while palm oil imports were down 31% to 0.19 million tons, European Commission data showed.