Malaysian palm oil futures rise

JAKARTA: Malaysian palm oil futures climbed for a third straight session on Tuesday, supported by strength in Dalian and Chicago vegetable oils.

The benchmark palm oil contract for April delivery on the Bursa Malaysia Derivatives Exchange gained 54 ringgit, or 1.28%, to 4,260 ringgit ($952.38) a metric ton at closing.

“Bursa Malaysia crude palm oil (CPO) is tracking gains in Dalian Commodity Exchange and Chicago soyoil, and some bargain hunting as well after holding above 4,200 ringgit,” a Kuala Lumpur-based trader said, adding that market participants also awaited production update for Jan. 1-20 period.

Dalian’s most active soyoil contract rose 1.73%, while its palm oil contract was up 0.6%. Soyoil at the Chicago Board of Trade surged 1.32%.

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

Malaysian CPO futures are expected to average higher in 2025 than last year, as top producer Indonesia boosts palm oil-based biodiesel consumption, although competition from cheaper rivals is expected to limit the upside, a Reuters poll showed.

Exports of Malaysian palm oil products for Jan. 1-20 are estimated to have fallen between 18.2% and 23%, according to cargo surveyors Intertek Testing Services and independent inspection company AmSpec Agri Malaysia.

Palm oil may retest support at 4,106 ringgit per metric ton, as a bounce triggered by this barrier may have completed.