Palm rises on bargain buying, soyoil spread

KUALA LUMPUR: Malaysian palm oil futures rose for a second consecutive session on Thursday, buoyed by bargain buying and improved price competitiveness against soyoil.

The benchmark palm oil contract for March delivery on the Bursa Malaysia Derivatives Exchange gained 30 ringgit, or 0.76%, to 3,996 ringgit ($978.21) a metric ton by the midday break.

Traders are purchasing the price dips following the recent sell-off and the price of palm oil has also become increasingly attractive compared to other competing oils, particularly soybean oil, said Paramalingam Supramaniam, director at Selangor-based brokerage Pelindung Bestari.

Dalian’s most-active soyoil contract fell 0.31%, while its palm oil contract added 1.27%.

Soyoil prices on the Chicago Board of Trade were up 0.45%. Palm oil tracks price movements of rival edible oils, as it competes for a share of the global vegetable oils market.

Oil prices rose following reports that the US was preparing new sanctions on Russian oil if Moscow does not agree to a Ukraine peace deal, as market participants assessed the supply risks posed by a blockade of Venezuelan oil tankers.

Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.

The ringgit, palm’s currency of trade, edged 0.05% higher against the dollar, making the commodity slightly expensive for buyers holding foreign currencies.

Malaysia has lowered its January 2026 crude palm oil reference price to a level that lowers the export duty to 9.5%, a circular on the Malaysian Palm Oil Board website showed.