VEGOILS - Palm extends its gain over Malaysia weather concerns and Dalian strength
Malaysian palm futures rose on Thursday for the second session in a row, boosted by concerns about production due to bad weather and the strength of rival Dalian edible oil.
By midday, the benchmark palm oil contract on Bursa Malaysia's Derivatives exchange for February delivery had gained 36 ringgit or 0.89% to 4,060 Ringgit ($983.29) per metric ton.
The market is nervous due to the weather vagaries and the announcements of impending flooding, said Paramalingam Supramaniam at Selangor brokerage Pelindung Bestari.
Anilkumar bagani, head of commodity research at Mumbai-based Sunvin Group, said that the contract rose due to short-covering after gains overnight in Chicago soyoil and Dalian palm oil futures.
Dalian's palm oil contract grew by 1.38%, while the most active soyoil contract climbed by 1.31%. Chicago Board of Trade closed on Thanksgiving Day.
As palm oil competes to gain a share in the global vegetable oil market, it tracks the price changes of competing edible oils.
Malaysian palm oil exports fell by nearly 29% to China in the first 10 month of 2025.
The Indonesian Palm Oil Association, GAPKI, reported that Indonesia exported 2.2 millions tons of palm oil, including refined products.
Exports fell from 3,48 million tons last August and 2,26 million tons during the same period in 2012.
According to Wang Tao, a technical analyst, palm oil could extend its gains to a range between 4,076 and 4,102 ringgits per ton. It has also found resounding support at around 3,965 rings.
(source: Reuters)
