KUALA LUMPUR: Malaysian palm oil futures settled higher on Tuesday, supported by bargain buying and stronger Dalian palm olein, while traders expect improved export data for the first half of August. The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange was up 103 ringgit, or 2.46%, at 4,290 ringgit ($1,015.38) a metric ton at the close.
The contract fell 1.37% in the previous session. Bargain buying supported prices across the board while Dalian palm olein recovered from yesterday’s lows, a Kuala Lumpur-based trader said. “The market will also be looking for improvement in export figures in the first half of August,” the trader added.
Dalian’s most-active soyoil contract rose 1.19%, while its palm oil contract added 2.84%. Soyoil prices on the Chicago Board of Trade gained 0.17%.
Palm oil tracks price movements of rival edible oils, as it competes for a share of the global vegetable oils market.
India’s palm oil imports fell in July on contract cancellations, while soyoil shipments to the country surged to a three-year high due to competitive prices and the delivery of delayed shipments from June, five dealers said.
Malaysia’s palm oil inventories are forecast to rise for a fifth consecutive month in July to reach their highest level in almost two years, as production growth outpaced exports, a Reuters survey showed. Oil was little changed as traders assessed rising OPEC+ supply and worries of weaker global demand, against US President Donald Trump’s threats to India over its Russian oil purchases.
Weaker crude oil futures make palm a less attractive option for biodiesel feedstock. The ringgit, palm’s currency of trade, strengthened 0.24% against the dollar, making the commodity slightly more expensive for buyers holding foreign currencies.
