Palm gains muted by firmer Ringgit, despite crude gains

Malaysian palm futures were flat on Wednesday, as the 'ringgit strengthened and weighed down on the market. However, the pressure from the stronger currency was offset by the higher crude oil price.

At the close, the benchmark contract for?palm?oil delivery in March on the Bursa Derivatives exchange fell 1 ringgit or 0.02% to 4,035 Ringgit ($998.02) per metric ton. The contract has risen 3.35% over the last two sessions.

A Kuala Lumpur based?trader said that the palm?oil was slightly lower due to a stronger Ringgit.

The trader reported that the ringgit firmed up to around 4.0550 at midday, its highest level since March 5, 2020.

The palm ringgit's trade currency strengthened by 0.42% compared to the dollar, increasing the price of this commodity for buyers who hold other currencies.

Dalian's most active?soyoil contracts fell by 0.05% while palm oil contracts increased by 0.47%. Chicago Board of Trade soyoil prices were up by 0.37%.

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 oil prices have been rising for the sixth consecutive day. This is due to the robust economic growth in the United States and to the risk of disruptions in supply from Venezuela and Russia. However, prices are on course for their steepest decline since 2020.

Palm oil is a better option for biodiesel because crude oil futures are stronger.

Data from the European Commission showed that by December 21, imports of soybeans into the European Union for 'the 2025/26 crop season, which began in July, had fallen 14% compared to a year ago, and palm oil imports were down 9% at 1.45 million tonnes. ($1 = 4.0430 ringgit)

(source: Reuters)