Palm oil rises as Chicago soyoil and crude oil prices strengthen

Malaysian palm futures were up for the fourth consecutive session on Wednesday, supported by gains in Chicago soyoil as well as energy.

At midday, the benchmark palm oil contract on Bursa Derivatives Exchange for June delivery gained 119 Ringgit or 2.69% to 4,538 Ringgit ($1,020.46) per metric ton.

Anilkumar bagani, head of commodity research at Mumbai-based Sunvin Group, said that the price of crude palm oil was higher following the Malaysian holidays, due to a rally on Chicago soyoil and energy prices.

Bagani stated that U.S. soybean oil prices increased after news of oil and biofuels groups meeting with the U.S. Environmental Protection Agency in order to advocate for higher mandates on biomass diesel blending. The U.S. Department of Agriculture secretary Brooke Rollins also announced funding of $537 millions for biofuel infrastructure.

Dalian's palm oil contract grew by 2%, while the most active soyoil contract climbed by 0.76%. Chicago Board of Trade soyoil prices were up by 0.15%.

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

After falling the previous session, oil prices were steady in thin trade on fears that new U.S. Tariffs could deepen a world trade war and limit crude demand.

Palm oil is a better option as a biodiesel feedstock because crude oil futures are stronger.

Exports in March rose between 0.4% to 3.92%, according to cargo surveyors.

The palm ringgit's trade currency, the dollar, fell by 0.32%, lowering the price of the commodity for buyers who hold foreign currencies.

Technical analyst Wang Tao stated that palm oil could retest the resistance level of 4,750 ringgit a ton during the second quarter 2025. A break above this mark would open the door for 5,231 ringgit.

(source: Reuters)