KUALA LUMPUR: Malaysian palm oil futures fell on Wednesday as sluggish demand from key markets pressured prices, although gains in Dalian soyoil helped cap losses.
The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange slid 23 ringgit, or 0.54%, to 4,267 ringgit ($1,009.46) a metric ton at the close. The contract rose 2.46% on Tuesday.
“Destination demand remains fragmented at the moment, which could result in further downward pressure on palm oil prices going forward,” said Anilkumar Bagani, research head of Mumbai-based vegetable oil broker Sunvin Group.
However, a bullish momentum in Dalian soyoil and rapeseed oil due to a slower crush is helping offset some bearish sentiments, thus preventing a larger decline, he said.
Dalian’s most active soyoil contract rose 1.35%, while its palm oil contract added 0.27%. Soyoil prices on the Chicago Board of Trade were up 0.8%.
Palm oil tracks the price movements of rival edible oils, as it competes for a share of the global vegetable oils market. Oil prices climbed, rebounding from a five-week low the previous day, as traders focused on US President Donald Trump threatening India with higher tariffs over its Russian crude purchases and a larger-than-expected US crude draw.
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock. The ringgit, palm’s currency of trade, weakened 0.05% against the dollar, making the commodity slightly cheaper for buyers holding foreign currencies.
European Union’s soybean imports for the 2025/26 season that began in July had reached 0.97 million metric tons by August 3, down 26% from the same period a year earlier, European Commission data showed. Palm oil imports were at 0.16 million tons, down 56%.
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