KUALA LUMPUR, July 8 (Reuters) – Malaysian palm oil futures rose on Wednesday, after the previous session’s slight decline, supported by stronger rival edible oils and crude oil prices.
The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange gained 30 ringgit, or 0.66%, to 4,577 ringgit ($1,123.19) a metric ton in early trade. The contract slipped 0.07% in the previous session.
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FUNDAMENTALS
* Dalian’s most-active soyoil contract was up 0.84%, while its palm oil contract added 0.74%. Soyoil prices on the Chicago Board of Trade rose 1.43%.
* Palm oil tracks the price movements of rival edible oils, as it competes for a share of the global vegetable oils market.
* Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
* The ringgit , palm’s currency of trade, weakened 0.2% against the dollar, making the commodity cheaper for buyers holding foreign currencies.
* European Union soybean imports reached 14.1 million metric tons in the 2025/26 season that ended on June 30, down 3% from 2024/25, while palm oil imports fell 4% to 2.9 million tons, European Commission data showed.
* Palm oil may retest a resistance at 4,592 ringgit per metric ton, as it has managed to stay within a rising channel, Reuters technical analyst Wang Tao said. TECH/C
MARKET NEWS
DATA/EVENTS
No data/events expected for Wednesday
($1 = 4.0750 ringgit)
Reporting by Ashley Tang; Editing by Ronojoy Mazumdar
Our Standards: The Thomson Reuters Trust Principles.
Source: Original Article
