KUALA LUMPUR: Malaysian palm oil futures rose on Wednesday, supported by firmer crude oil prices, stronger Chicago soyoil and a weaker ringgit.
Palm bounces back on Indonesia’s October reference price hike
The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange was up 69 ringgit, or 1.72%, at 4,075 ringgit ($978.63) a metric ton as of 0237 GMT. The contract rose 1.8% in overnight trade.
Fundamentals
- The ringgit, palm’s currency of trade, weakened 0.22% against the dollar, making the commodity cheaper for buyers holding foreign currencies.
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Oil prices rose on Wednesday on fears that the conflict in the Middle East could turn into a wider war and disrupt oil supply from the key producing region after Iran fired ballistic missiles at Israel.
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Brent crude futures for December were up 1.18% at $74.43 a barrel as of 0237 GMT. Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
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Soyoil prices on the Chicago Board of Trade rose 1.21%. Dalian’s vegetable oil markets were closed for China’s Golden Week holiday.
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Palm oil tracks the price movements of rival edible oils, as they compete for a share of the global vegetable oils market.
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The European Union’s palm oil imports so far in the 2024/25 season that started in July was at 645,000 metric tons by Sept. 29, down 36% from a year earlier, data from the European Commission showed on Tuesday. The EU is the world’s third-largest importer of palm oil.
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Palm oil could rise into a range of 4,120 ringgit to 4,153 ringgit per metric ton, as it may have resumed its uptrend, Reuters technical analyst Wang Tao said.
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