US Report: Palm oil prices rise on the strength of Dalian palm olein

The Malaysian palm futures closed higher on Wednesday for the fifth consecutive session, boosted by a positive U.S. report about world agricultural demand and supply estimates as well as a stronger Dalian palm oil.

At the close of the day, the benchmark contract for palm oil delivery in April on the Bursa Derivatives exchange rose 31 ringgit or 0.67% to 4,624 Ringgit ($1,034.45) per metric ton. The Malaysian market was closed for a holiday on Tuesday.

A Kuala Lumpur based trader reported that the Crude Palm Oil Futures were lifted due to a stronger oilseeds rival market and a neutral to bullish World Agricultural Supply and Demand Estimates Report (WASDE), oilseeds from the U.S Department of Agriculture.

Dalian's palm oil contract, which is the most active contract in Dalian, increased by 1.13%. Chicago Board of Trade soyoil prices were down by 0.48%.

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

India's palm oils

Imports

The Solvent Extractors' Association of India said that palm oil refining margins were negative, and so refiners switched to cheaper soyoil.

By February 9, 2024/25 soybean imports from the European Union, which began in the summer, had reached 8.36 million tons, a 10% rise compared to the previous season.

According to the European Commission, imports of palm oil reached 1,73 million tons in the first quarter, which is a decline of 21% from the same time last year.

Oil prices dropped 1% after three days of gains. Industry sources cited rising U.S. crude stocks and comments from Fed Chairman Jerome Powell signaling slower rate cuts in 2019.

The palm ringgit's currency has weakened by 0.07% compared to the U.S. Dollar, making it cheaper for foreign buyers.

(source: Reuters)