Palm gains for second session on firmer crude, rival edible oils
- Dalian’s most-active soyoil contract fell 0.18%
KUALA LUMPUR: Malaysian palm oil futures reversed earlier losses to edge higher for a second straight session on Thursday, buoyed by stronger crude oil prices and firmer Dalian palm olein and Chicago soyoil.
The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange gained 15 ringgit, or 0.32%, to 4,679 ringgit ($1,144.29) a metric ton at the close.
Dalian palm olein and Chicago soyoil traded higher during the Asian afternoon session, a Kuala Lumpur-based trader said.
“The benchmark October contract traded in a lackluster manner throughout the morning session, with trading activity remaining below average as market participants stayed cautious,” the trader added.
Dalian’s most-active soyoil contract fell 0.18%, while its palm oil contract rose 0.47%. Soyoil prices on the Chicago Board of Trade were up 0.4%.
Palm oil tracks the price movements of rival edible oils, as it competes for a share of the global vegetable oils market.
Oil prices rose for a second day as renewed attacks between the United States and Iran disrupted oil flows through key shipping routes.
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
The ringgit, palm’s currency of trade, remained unchanged against the U.S. dollar.
Indonesia has raised its palm oil-based biodiesel allocation for 2026 to 16.75 million kilolitres to meet additional demand from the country’s B50 biodiesel mandate launched earlier this month, an energy ministry document showed.