Palm oil prices rise before the Dalian trading stoppage
The Globex electronic trading system was down on Friday, and all Bursa Malaysia derivatives were affected.
The benchmark palm-oil contract for February delivery at the Bursa Derivatives exchange gained 22 ringgit or 0.54% to 4,112 Ringgit ($995.88). This was its third consecutive session of gains before trading was stopped around 10:36 am (0236 GMT).
According to LSEG Data, it was unclear how many CME products had been affected, but the prices of WTI crude oil, Treasury futures and S&P 500 Futures, palm oils, gold, and S&P futures were not updated.
The bourse stated that its priority was to minimize the impact and to ensure market integrity. It also said it worked with Globex provider Chicago Mercantile Exchange Group in order to restore service as soon as possible.
The benchmark contract is up 1.1% this week but down 2.78% in the last month.
A Mumbai-based trader with a trading house said that the price was driven by concerns about production, as flooding in Malaysia and Indonesia had impacted production, while demand from India showed signs of improvement.
As of 0554 GMT, the Dalian Commodity Exchange’s most active soyoil contract rose 0.68%. Palm oil contracts increased by 1.63%.
As palm oil competes to gain a share in the global vegetable oil market, it tracks the price changes of competing edible oils.
The Malaysian commodities minister stated on Thursday that palm oil exports from Malaysia to China dropped by nearly 29% in the 10 first months of 2025.
The Indonesian Palm Oil Association, GAPKI, reported that Indonesia exported 2.2 millions tons of palm oil, including refined products.
According to AmSpec Agri, an independent inspection company, and Intertek Testing Services cargo surveyors, the exports of Malaysian products containing palm oil for the period November 1-25 were down 16.4% to 18.8% compared with a month ago.
Technical analyst Wang Tao stated that palm oil could extend its gains to 4,145 to 4,171 Ringgit per metric tonne, since it has moved above the low of 4,078 Ringgit on November 13.
(source: Reuters)
