Palm oil rises against stronger competitors, crude oil

Malaysian palm futures rose on Wednesday as they 'tracked gains in rival edible oil and crude oil prices rose due to fresh U.S. Iran tensions.

By midday, the benchmark palm oil contract on the Bursa Derivatives exchange for September delivery had gained 21 ringgit or 0.46% to 4,568?ringgit ($1,122.36). The contract fell 0.07% Tuesday.

Paramalingam Supramaniam is the director of brokerage Pelindung Bestari. He said that the Middle East tensions are also helping to boost the buying interest in Kuala Lumpur.

The market is still struggling to recover from the slump in demand for palm oil. Position'squaring' ahead of the Malaysian Palm Oil Board Report on Supply and Demand also affected the market.

Dalian's palm oil contract, which is the most active contract in Dalian, rose by 0.78%. Prices of soyoil on the Chicago Board?Trade increased by 1.43%.

As palm oil competes to gain a share in the global vegetable oil?market, it tracks the price movement of its rival edible oils.

The oil price rose by more than 2% following the U.S. military's airstrikes on Iran and the reimposition of?crude sale sanctions. This heightened fears that their fragile truce could unravel and Middle East supply might be disrupted once again.

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 0.07%, making it slightly cheaper for foreign buyers.

Data from the European Commission shows that EU soybean imports in 2025/26, which ended on June 30th, were 14.1 million metric tonnes, down 3% from 2024/25. Palm oil imports, however, fell by 4%, to 2.9 millions tons.

Technical analyst Wang Tao stated that palm oil could retest resistance at 4,592 Ringgit per ton as it has "managed to remain within a growing channel".

1 Please enter the freight rate from Peninsula Malaysia/Sumatra, and then press Enter. Or, double-click between the brackets to view rates for China, India, Pakistan, and Rotterdam. Double-clicking on the codes between the brackets will allow terminal users to view edible oil futures and cash prices. To move to the next page, press F12. To go back, hit F11. 1

(source: Reuters)