Palm oil up more than 1% and reaches a 2-week high due to rival oil, crude strength
Malaysian palm futures rose more than 1% Wednesday, reaching a new two-week high. Stronger rival edible oils supported?the?market, and crude oil prices rose due to renewed tensions between the U.S. and Iran.
The benchmark palm oil contract for September delivery at the Bursa Malaysia derivatives exchange grew?61 ringgit or 1.34% to 4,608 Ringgit ($1,131.08), its highest close since 24 June.
Paramalingam Supramaniam is the director of brokerage Pelindung Bestari. He said that buying interest has been stoked in crude palm futures, in line with Chicago and Dalian. This was stoked due to tensions in Middle East.
He said that the demand for palm oil has yet to show signs of improvement, and the position-squaring in anticipation of the Malaysian Palm Oil Board's report on supply?and?demand?also weighed heavily on the market.
Dalian's palm oil contract, which is the most active contract, rose?0.38%. Chicago Board of Trade soyoil prices rose 2.19%.
Palm oil follows the price movement of competing edible oils as it competes for a share of global vegetable oils.
Oil prices rose more than 6% and reached a two-week peak after U.S. President Donald Trump declared that the memorandum to end the conflict between the U.S. and Iran is "over". This renewed fears about disruptions in Middle East oil supply.
Palm oil is a better option as a biodiesel feedstock because crude oil futures are stronger.
The palm ringgit's trade currency, the dollar, has weakened by 0.17%, making it slightly cheaper for foreign buyers.
Data from the European Commission showed that EU soybean imports reached 14.1 million metric tonnes in 2025/26, down 3% compared to 2024/25. Palm oil imports also fell 4%, falling to 2.9?tons. ($1 = 4.0740 ringgit)
1 Please enter the freight rate from Peninsula Malaysia/Sumatra, and then press Enter, or click twice between the brackets. Double-clicking on the codes between the brackets will allow terminal users to see the cash and futures edible oil prices. To go back, hit F11. 1
(source: Reuters)
