Thursday, January 30, 2025

Palm oil prices rise on the back of bargain-buying and strong competition oils

December 27, 2024

Malaysian palm oils futures rose Friday on the back of bargain-buying and higher rival edible oil prices, but weaker export estimates limited gains.

The benchmark contract for palm oil delivery in March on the Bursa Derivatives Exchange rose 82 ringgit or 1.8% to 4,625 Ringgit ($1,035.14) per metric ton.

The contract rose 4.33% last week, ending a two-week slide.

Anilkumar Bagani said that the price of crude palm oil futures was higher in Asian hours, due to bargain-buying, a weaker Malaysian Ringgit, and gains in Chinese Vegetable Oil Futures.

Dalian's palm oil contract, which is the most active contract in Dalian, grew by 0.94% and soyoil prices rose by 0.78%. Chicago Board of Trade Soyoil Prices rose 0.6%.

As palm oil competes to gain a share in the global vegetable oil market, it tracks price changes of competing edible oils.

The palm ringgit's currency, the U.S. Dollar, fell by 0.02%, making the commodity more affordable for buyers who hold foreign currencies.

Bagani stated that the "weaker Malaysian palm oil performance and the lack of fresh demand towards the end of the calendar year" were seen as capping the gains.

Malaysian palm oil exports fell between Nov. 1-25 and Dec. 1-25, according to cargo surveyors.

The price of oil rose slightly, on course for a weekly increase, due to expectations of an economic recovery driven by stimulus in China, which is the world's largest oil importer. Also, forecasts of lower U.S. inventory levels were driving this rise.

CBOT soybeans futures rose more than 1% and soymeal reached a two-month peak on Thursday, as traders reported that speculators exited short positions due to concerns about the dry weather in Argentina. ($1 = 4,4680 ringgit). (Reporting and editing by Ashley Tang)

(source: Reuters)

Related News

Marine Technology ENews subscription

World Energy News is the global authority on the international energy industry, delivered to your Email two times per week.

Subscribe to World Energy News Alerts.