Palm oil gains on stronger edible oils and logs weekly gain
Malaysian palm futures rose Friday, ending a three-week loss streak as higher rival edible oils lifted sentiment.
The benchmark contract for palm oil delivery in July on the Bursa Derivatives Exchange rose 22 ringgit or 0.55% to 4,058 Ringgit ($928.60).
The contract increased by 2.09% in the last week.
A Kuala Lumpur based trader reported that the price of crude palm oil futures was boosted by overnight gains in rival oilseeds. This included Chicago soyoil. The rise followed optimism regarding export demand for United States soyoil.
Dalian's palm oil contract, which is the most active contract, increased by 2% while soyoil prices rose by 1.28%. Chicago Board of Trade soyoil prices rose 1.84%.
As palm oil competes to gain a share in the global vegetable oil market, it tracks the price fluctuations of competing edible oils.
The oil price fell, and was set to decline by over 2% in a week due to concerns about oversupply and the uncertainty surrounding tariff talks between China and the U.S.
Palm oil is less appealing as a biodiesel feedstock due to the weaker crude oil futures.
The palm ringgit currency of trade remained unchanged in relation to the U.S. Dollar.
The European Commission projects EU palm oil imports to be 2.5 million tons in 2025-2026, compared with 3.0 million tonnes last month.
Four dealers reported that India is now increasing its palm oil purchases following a five-month lull. A correction in the price has made tropical oil cheaper than soyoil rivals, which has encouraged refiners place orders to replenish their inventories. ($1 = 4.3700 ringgit)
(source: Reuters)
