JAKARTA: Malaysian palm oil futures rose for a second straight session on Thursday, supported by production worries due to adverse weather and tracking strength in rival Dalian edible oils.
The benchmark palm oil contract for February delivery on the Bursa Malaysia Derivatives Exchange gained 65 ringgit, or 1.62%, to 4,089 ringgit ($983.29) a metric ton at closing.
“Weather vagaries, with announcements on the impending floods, are keeping the market nervous,” said Paramalingam Supramaniam, director at Selangor-based brokerage Pelindung Bestari.
Severe flooding brought on by heavy rain has killed two in Malaysia and at least 33 in neighbouring Thailand over the last week, with tens of thousands now in evacuation centers in both countries, some after being trapped for days.
The contract also rose on short-covering following gains in overnight Chicago soyoil futures and Dalian palm olein futures in Asian hours, said Anilkumar Bagani, commodity research head at Mumbai-based brokerage Sunvin Group.
Dalian’s most-active soyoil contract gained 1.31%, while its palm oil contract rose 1.74%. The Chicago Board of Trade was closed for the Thanksgiving holiday.
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 exports to China fell by almost 29% in the first 10 months of 2025, the country’s plantation and commodities minister said.
Indonesia exported 2.2 million tons of palm oil in September, including refined products, the Indonesian Palm Oil Association (GAPKI) said.
Exports were down from 2.26 million tons in the same period of last year, and from 3.48 million tons in August.
Palm oil may extend gains into a range of 4,076 ringgit to 4,102 ringgit per ton, as it has found strong support around 3,965 ringgit, according to Reuters technical analyst Wang Tao.
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