Palm Oil Rises Over 1% on Firmer Rival Oils, Crude Oil Prices
Malaysian Palm Oil Futures Climb
Malaysian palm oil futures climbed more than 1% on Thursday as trading resumed after a holiday, with gains in crude oil prices and rival edible oils underpinning the market.
Market Details
The benchmark palm oil contract (FCPOc3) for August delivery on the Bursa Malaysia Derivatives Exchange rose 72 ringgit, or 1.6%, to 4,568 ringgit ($1,148) a metric ton by the midday break.
Anilkumar Bagani, commodity research head at Mumbai-based brokerage Sunvin Group, said the market traded higher in unison with energy prices, Chinese vegetable oil futures and Chicago soyoil. 'Market chatter surrounding the super El Nino phenomenon has made traders cautious. This is seen as supportive for palm oil prices at the moment,' he added.
Impact of Rival Oils and Crude Oil
Dalian's most-active soyoil contract (DBYcv1) rose 0.75%, while its palm oil contract CPO1! added 0.9%. Soyoil prices on the Chicago Board of Trade (BOcv1) were up 0.65%. Palm oil tracks the price movements of rival edible oils as it competes for a share of the global vegetable oils market.
Oil prices jumped more than 3% after Iran's Revolutionary Guards said they targeted a U.S. airbase in response to a U.S. attack near Bandar Abbas airport. Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
Currency and Other Factors
The ringgit (USDMYR), palm's currency of trade, weakened 0.45% against the dollar, making the commodity cheaper for buyers holding foreign currencies.
European Union soybean imports for the 2025/26 season that began in July had reached 11.95 million tons by May 24, down 8% from a year earlier, while palm oil imports were down 4% to 2.55 million tons, European Commission data showed.
Indonesia's finance minister said Wilmar International and the Musim Mas Group are among the palm oil companies now being probed for suspected 'under-invoicing' of exports.
Palm oil may break a resistance at 4,542 ringgit per ton and rise to 4,583 ringgit, said Reuters technical analyst Wang Tao.
Impacted Symbols
Symbols affected by this headline and their sentiment signals
The news directly addresses the rise in palm oil prices and mentions the increase in CPO1! futures.
U.S. DOLLAR / MALAYSIAN RINGGIT
The weakening of the ringgit against the dollar makes palm oil cheaper for foreign buyers, potentially boosting demand.
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