KUALA LUMPUR: Malaysian palm oil futures inched higher on Wednesday, supported by stronger exports and firmer soyoil, but palm oil losing its competitive advantage over soyoil capped the gains.
The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange was up 37 ringgit, or 0.85 percent, at 4,380 ringgit (USD1,041.62) a metric ton at the close. The contract fell 2.25 percent on Tuesday.
Crude palm oil futures traded marginally higher on strong export performance and higher Chicago soybean oil prices at midday, said David Ng, a proprietary trader at Kuala Lumpur-based trading firm Iceberg X Sdn Bhd.
“The narrowing spread between palm oil and soybean oil is also weighing on palm oil price gains.”
Cargo surveyors estimated exports of Malaysian palm oil products for September 1-20 to have risen between 8.3 percent and 8.7 percent month-on-month.
Dalian’s most-active soyoil contract fell 0.44 percent, while its palm oil contract added 0.44 percent. Soyoil prices on the Chicago Board of Trade slipped 0.18 percent.
Palm oil tracks the price movements of rival edible oils as it competes for a share of the global vegetable oils market.
Oil prices inched up as an industry report showed US crude inventories declined last week, adding to a sense in the market of tightening supplies.
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
Malaysian palm oil futures are likely to jump 27 percent to a more than three-year high of 5,500 ringgit per ton in January-March 2026, as rising biodiesel consumption in top producer Indonesia tightens supplies, industry analyst Dorab Mistry said.
Comments
Comments are closed for this article.