VEGOILS - Malaysian palm oil surges by 3% to a four-week-high on Chicago soyoil price strength

Malaysian palm futures rose?more than 3 percent on Wednesday, reaching their highest level in four weeks, supported by higher Chicago soyoil price, though profit-taking limited any upside.

The benchmark palm oil contract for August delivery at the Bursa Derivatives Exchange in Malaysia gained 140 ringgit or 3.09% to 4,675 Ringgit ($1,171.68) per metric ton. This is the highest price to close since May 5. The contract dropped 0.04% during the previous session.

A Kuala Lumpur based trader stated that the market experienced a?post-holiday rally?, which was largely driven primarily by stronger oilseeds. Specifically, Chicago soybean oil. Profit-taking also curtailed further gains.

Dalian's palm oil contract, which is the most active contract in Dalian, gained 0.43% while soyoil prices rose 0.25%. Prices of soyoil on the Chicago Board?Trade rose 1.3%.

As it competes to gain a share in the global vegetable oil market, palm oil monitors the price fluctuations of rival edible oils.

The oil prices increased by more than 2% in Wednesday's session, continuing gains made the previous day, as hostilities erupted again in the Middle East and the talks between Washington and Tehran?showed limited progress.

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

The palm ringgit's currency, the dollar, has weakened by 0.68%, making it cheaper for buyers who hold foreign currencies.

Five dealers reported that India's imports of palm oil rose modestly from a low four-months earlier, but they remained below average as refiners shifted to rival soyoil when palm's advantage in price over competing oils shrank.

Indonesia exported 7.72 million tons (up 20.38%) of crude and refined palm oil during the first four months in 2026.

(source: Reuters)