KUALA LUMPUR: Malaysian palm oil futures extended gains on Wednesday for a second straight session, as expectations of robust exports to key destinations lifted the market, though softer soyoil and crude oil prices capped the rise.
The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange gained 8 ringgit, or 0.17percent, to 4,704 ringgit (USD1,149.56) a metric ton at the close. The contract rose 1.45percent on Tuesday.
Crude palm oil futures traded higher on expectations of strong export performance, but weaker soybean oil and crude oil prices may continue to weigh on market sentiment, said David Ng, a proprietary trader at Kuala Lumpur-based trading firm Iceberg X Sdn Bhd.
Palm oil tracks the price movements of rival edible oils, as it competes for a share of the global vegetable oils market, while weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
India’s edible oil imports climbed to their highest level in 10 months in July as refiners increased purchases of palm oil and soyoil to replenish inventories ahead of the local festival season amid tightening domestic supplies, five dealers said.
Dalian’s most-active soyoil contract fell 0.07percent, while its palm oil contract added 1.16percent. Soyoil prices on the Chicago Board of Trade were up 0.25percent. Oil prices rose after Yemen’s Iran-aligned Houthi rebels said they attacked a Saudi oil tanker in the Red Sea, denting hopes of a de-escalation in Iran war hostilities that could restore shipping traffic and oil flows in the Middle East. The ringgit, palm’s currency of trade, weakened 0.12percent against the dollar, making the commodity slightly cheaper for buyers holding foreign currencies.
European Union soybean imports for the 2026/27 season that began on July 1 reached 0.66 million metric tons by August 2, down 50percent from the same period a year earlier, while palm oil imports were down 31percent to 0.19 million tons, European Commission data showed.
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