Palm prices rise for second consecutive session due to firmer soyoil Prices

The price of palm oil in Malaysia rose for the second consecutive session on Tuesday. This was due to higher soyoil costs and a stronger demand from China.

By midday, the benchmark palm oil contract on the Bursa Derivatives Exchange for delivery in?March? gained 16 ringgit (0.4%), to 4,001 Ringgit ($984.50) per metric ton.

David Ng, a proprietary trading at Kuala Lumpur's Iceberg X Sdn Bhd, said that the price of crude palm oil was supported by strength on the soybean oil markets, mainly due to strong Chinese demand.

Dalian's most active?soyoil contracts rose by 0.39% while palm oil contract gained 1.56%. Prices of soyoil on the Chicago Board of Trade fell by 0.51%.

As palm oil competes to gain a piece of the global vegetable oil market, it tracks the price changes of its rival edible oils.

Oil prices remained stable despite a rise of more than 2% the previous session. The U.S. has said that it may sell the Venezuelan oil it has seized. Meanwhile, Ukraine's attacks against Russian vessels and piers have heightened concerns about a disruption in supply.

Palm oil is a better option as a feedstock for biodiesel due to the stronger crude oil futures.

Ernest Gunawan said that Indonesia allocated 15.646 kilolitres (or palm-based biodiesel) for its 2026 blend mandate.

Intertek Testing Services, a cargo surveyor, estimated that exports of Malaysian products containing palm oil for the period December 1-20 were up 2.4% compared to a month ago. AmSpec Agri Malaysia reported a drop of 0.87 %.

The palm currency, the ringgit, has strengthened by 0.29% in relation to the dollar. This makes the commodity more costly for buyers who hold foreign currencies.

Technical analyst Wang Tao stated that a declining trendline indicated that palm oil could extend its gains to a range between 4,042 and 4,078 ringgits per metric ton.

(source: Reuters)