JAKARTA: Malaysian palm oil futures closed higher for a third straight session on Tuesday, tracking higher edible oil prices at the Dalian market.
The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange rose 16 ringgit, or 0.36%, to 4,400 ringgit ($1,040.68) a metric ton at the close.
“The futures is tracking Dalian strength to be trading higher,” a Kuala Lumpur-based trader said.
Dalian’s most-active soyoil contract rose 0.9%, while its palm oil contract gained 3.13%. Soyoil prices on the Chicago Board of Trade were down 0.81%.
Palm oil tracks price movements of rival edible oils, as it competes for a share of the global vegetable oils market.
Malaysia’s palm oil stocks rose to their highest level in almost two years in July, increasing 4.02% over the month to 2.11 million tons as robust production outpaced an increase in demand, data from the industry regulator showed on Monday.
Exports of Malaysian palm oil products for August 1-10 rose 23.3%, according to cargo surveyor Intertek Testing Services, while according to AmSpec Agri Malaysia it rose 23.7%.
Indonesia reaffirmed a plan to raise the mandatory palm oil content in its biodiesel to 50% starting from next year, but the programme known as B50 is unlikely to start in January.
India’s soyoil imports are poised to surge 60% year-on-year to a record high in 2024/25, as refiners boost purchases due to cheaper prices than rival palm oil, shipments of which are set to hit a five-year low, six dealers told Reuters.
Meanwhile, its palm oil imports in the year are likely to fall 13.5% from a year ago to 7.8 million metric tons, the lowest since 2019/20, dealers said.
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