Palm ends lower for third session despite strong export demand
- Dalian’s most-active soyoil contract rose 0.65%
KUALA LUMPUR: Malaysian palm oil futures gave up early gains to close lower on Wednesday, their third consecutive daily loss, despite strong export demand ahead of Diwali festive-season buying in India.
The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange fell 14 ringgit, or 0.3%, to 4,687 ringgit ($1,149.90) a metric ton at the close.
The market traded higher in the morning session on the recent robust export strength seen in recent weeks amid the upcoming Diwali season, said David Ng, a proprietary trader at Kuala Lumpur-based trading firm Iceberg X Sdn Bhd.
Cargo surveyors estimated that exports of Malaysian palm oil products for October 1-25 rose between 46.9% and 67.7% from a month earlier.
Oil prices rose over 1% after an attack on a refinery in Saudi Arabia, the world’s top crude exporter, renewed concerns about supply risks because of conflicts in the Middle East.
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
Dalian’s most-active soyoil contract rose 0.65%, while its palm oil contract shed 0.4%. Soyoil prices on the Chicago Board of Trade were down 0.24%.
Palm oil tracks the price movements of rival edible oils, as it competes for a share of the global vegetable oils market.
European Union soybean imports for the 2026/27 season that began in July reached 3.8 million metric tons by October 25, down 2% from the same period a year earlier, while palm oil imports were down 21% to 0.8 million tons, European Commission data showed.
The ringgit, palm’s currency of trade, strengthened 0.32% against the dollar, making the commodity more expensive for buyers holding foreign currencies.
Comments