KUALA LUMPUR: Malaysian palm oil futures extended gains for a second session, as stronger Chicago soyoil supported the market, though weather concerns and a weak November export data weighed.
The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange gained 27 ringgit, or 0.66%, to 4,139 ringgit ($979.88) a metric ton at the close.
The uptrend in Chicago soyoil prices is helping to sustain the palm market, though traders are also squaring off their positions ahead of a weather warning, said Paramalingam Supramaniam, director at Selangor-based brokerage Pelindung Bestari.
Supramaniam noted headwinds from weaker preliminary November export figures and a firming ringgit.
The Malaysian Meteorological Department said the northeast monsoon is expected to arrive on Thursday and continue through March 2026, covering the east coast of peninsular Malaysia, Sabah and Sarawak. Continuous rainfall could result in flooding near rivers and low-lying areas.
Cargo surveyors estimated Malaysian palm oil products exports for November 1-10 fell between 9.5% and 12.3% compared to the same period a month earlier.
Dalian’s most-active soyoil contract rose 0.34%, while its palm oil contract added 1.15%. Soyoil prices on the Chicago Board of Trade were up 0.71%.
Palm oil tracks price movements of rival edible oils, as it competes for a share of the global vegetable oils market.
The ringgit palm’s currency of trade, strengthened 0.51% against the dollar, making the commodity more expensive for foreign currency holders.
Oil prices were stable, as oversupply concerns balanced uncertainty over the impact of the latest U.S. sanctions on Russian oil.
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
Comments
Comments are closed for this article.