KUALA LUMPUR: Malaysian palm oil futures edged higher on Wednesday, snapping a two-day losing streak, on expected supply outlook for next year and short-term demands.
The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange gained 74 ringgit, or 1.75%, to 4,313 ringgit ($1,005.36) a metric ton at the close.
The contract shed 1.89% in the past two sessions.
Palm oil is trading higher today due to the anticipated supply outlook for the first quarter of 2025 and sustained short-term demand, said Marcello Cultrera, a grains, oilseeds and softs broker at SSY Global.
Earlier this month, Oil World senior analyst David Mielke expected palm oil production to increase by 2.3 million metric tons in 2024-25 compared to the previous season.
Dalian’s most-active soyoil contract rose 1.15%, while its palm oil contract gained 1.3%. Soyoil prices on the Chicago Board of Trade were up 0.64%.
Palm oil tracks prices of rival edible oils as they compete for a share of the global vegetable oils market.
Palm oil extends declines on weaker rivals; export data caps losses
Oil steadied on Wednesday, supported by OPEC+ cuts and uncertainty over what may happen next in the Middle East conflict, although an outlook for ample supply next year added downward pressure.
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
The ringgit, palm’s currency of trade, strengthened 0.39% against the U.S. dollar, making the commodity more expensive for buyers holding foreign currencies.
Cargo surveyors estimate exports of Malaysian palm oil products rose between 14% and 15.6% during Oct. 1-15, compared with the same period a month ago.
Comments