Palm climbs on stronger oil rivals, signs of export recovery
Malaysian palm oils futures rose by more than 1% Wednesday after falling the previous session. This was due to stronger competitor oils and improved export demand from India and China.
At midday, the benchmark palm oil contract for?March delivery at the Bursa Derivatives exchange gained 43 ringgit or 1.06% to 4,107 Ringgit ($1,013.32) per metric ton.
Paramalingam Supramaniam is the director of Selangor brokerage Pelindung Bestari.
Supramaniam said that January exports are picking up steam with positive figures for the first 10 of the month and expectations for the first 15 days to be positive.
He said that "India and China have shown some interest in the past two days."
According to cargo surveyors, exports of Malaysian products containing palm oil for the period January 1-10 increased between 17.7% and 29,2% compared to a month ago. Cargo surveyors are expected to release their estimates of exports for January 1-15 this Thursday.
Dalian's palm oil contract, which is the most active contract, gained 0.2% while soyoil prices increased by 0.15%. Chicago Board of Trade soyoil prices were up 0.2%.
As palm oil competes to gain a share in the global vegetable oils market, it tracks the price changes of its rival edible oils.
The palm ringgit's trade currency strengthened by 0.05% versus the dollar. This made the commodity more expensive for buyers who hold foreign currencies.
The European Union's soybean imports for the 2025/26 crop season, which began in July, reached 6.61 metric tons on January 11, down 14% compared to the same period last year. Palm oil imports fell 5%, at 1.60 metric tonnes.
The oil market fell after a four day increase as Venezuela resumed exports. However, fears of Iranian supply disruptions due to deadly unrest in the Middle Eastern major producer are looming over the'market.
Palm oil is less appealing as a biodiesel feedstock due to the weaker crude oil futures.
Technical analyst Wang Tao believes that the wave c may drive palm oil prices back to their Tuesday high of 4,147 Ringgit per metric tonne.
(source: Reuters)
