JAKARTA: Malaysian palm oil futures closed higher on Wednesday, extending gains to a fourth straight session, on the back of strength from the Dalian market, fueled by China’s plan to impose anti-dumping duty on canola imports from Canada.
The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange gained 33 ringgit, or 0.75%, to 4,435 ringgit ($1,054.70) a metric ton at the close.
“The Chinese markets have been on fire after China announced a preliminary anti-dumping duty of 75.8% is imposed on canola imports from Canada. The Rapeseed oil futures skyrocketed today, palm oil and soyoil futures at Dalian have just followed it,” said Anilkumar Bagani, head of research at Mumbai-based vegetable oil broker Sunvin Group.
China announced preliminary anti-dumping duties on Canadian canola imports on Tuesday, which will be effective from Thursday, escalating a year-long trade dispute that began with Ottawa’s imposition of tariffs on Chinese electric vehicle imports last August.
Dalian’s most-active soyoil contract rose 1.49%, while its palm oil contract gained 1.4%. Soyoil prices on the Chicago Board of Trade were up 0.28%.
Palm oil tracks price movements of rival edible oils, as it competes for a share of the global vegetable oils market.
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Meanwhile, Malaysia has raised its September crude palm oil reference price, a change that increases the export duty rate to 10%, a circular on the Malaysian Palm Oil Board website showed on Thursday.
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.
Its palm oil imports in the year are likely to fall 13.5% from a year ago to 7.8 million tons, the lowest since 2019/20, dealers said.
The ringgit, the palm’s currency of trade, strengthened 0.54% against the dollar, making the commodity more expensive for buyers holding foreign currencies.
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