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.
Comments