KUALA LUMPUR: Malaysian palm oil futures rose to their highest close in almost three weeks on Wednesday after rising for five straight sessions, supported by stronger soyoil prices.
The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange gained 17 ringgit, or 0.4 percent, to 4,226 ringgit (USD1,018.80) a metric ton at the close.
The contract rose in line with soybean oil but concerns about November demand and the strength of the ringgit capped the gains, said Paramalingam Supramaniam, director at Selangor-based brokerage Pelindung Bestari. “Until more is known about the demand in November, which does not look good from initial figures, the upper side will remain capped,” Supramaniam said.
Dalian’s most-active soyoil contract rose 0.6percent, while its palm oil contract added 1.89percent. Soyoil prices on the Chicago Board of Trade were up 0.08percent.
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 0.29 percent against the dollar, making the commodity slightly more expensive for buyers holding foreign currencies.
Oil prices fell slightly as an industry report showed higher crude inventories in the US, reinforcing concerns about oversupply, though price declines were limited by a tighter fuel market because of attacks against Russian oil infrastructure.
Weaker crude oil futures make palm a less attractive option for biodiesel feedstock. European Union soybean imports for the 2025/26 season, which began in July, reached 4.40 million metric tons by November 16, down 16percent from the same period a year earlier, while palm oil imports fell 18percent to 1.08 million tons, data published by the European Commission showed.
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