Palm rangebound as strong Chicago soyoil counters sluggish exports

KUALA LUMPUR: Malaysian palm oil futures traded in a narrow range on Wednesday, as concerns over sluggish exports and elevated inventories continue to pressure the market, though stronger Chicago soyoil and crude oil supported prices.

The benchmark palm oil contract for March delivery on the Bursa Malaysia Derivatives Exchange slid 5 ringgit, or 0.13%, to 3,957 ringgit ($969.14) a metric ton at the midday break.

The contract fell 1.39% in the last three consecutive sessions.

The market remains concerned about the weak exports and high stock levels in the country, said David Ng, a proprietary trader at Kuala Lumpur-based trading firm Iceberg X Sdn Bhd.

However, the rebound in Chicago soybean oil and crude oil markets kept prices supported, Ng added.

Dalian’s most-active soyoil contract fell 0.73%, while its palm oil contract shed 0.97%.

Soyoil prices on the Chicago Board of Trade were up 0.19%. Palm oil tracks price movements of rival edible oils, as it competes for a share of the global vegetable oils market.

Oil prices rose more than 1% after US President Donald Trump ordered “a total and complete” blockade of all sanctioned oil tankers entering and leaving Venezuela, raising fresh geopolitical tensions at a time of concerns over demand. Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.

The ringgit, palm’s currency of trade, weakened 0.02% against the U.S dollar, making the commodity slightly cheaper for foreign currency holders.

The US Environmental Protection Agency expects to finalize 2026 and 2027 biofuel blending mandates, which were originally expected in late October, in the first quarter of next year.

European Union soybean imports for the 2025/26 season that began in July had reached 5.65 million metric tons by December 14, down 13% from the same period a year earlier, while palm oil imports fell 12% to 1.35 million tons, European Commission data showed.