KUALA LUMPUR: Malaysian palm oil futures extended gains for a second straight session on Wednesday, buoyed by stronger rival edible oils, though weaker crude oil prices capped the rise.
The benchmark palm oil contract for April delivery on the Bursa Malaysia Derivatives Exchange gained RM43, or 1.05 per cent, to RM4,137 (US$1,020.22) a metric ton in early trade.
Dalian's most-active soyoil contract firmed 0.07 per cent, while its palm oil contract added 1.15 per cent. Soyoil prices on the Chicago Board of Trade were up 0.06 per cent.
Palm oil tracks the price movements of rival edible oils as it competes for a share of the global vegetable oils market.
Oil prices fell as an expected build-up of US crude inventories outweighed a temporary halt in output at two large fields in Kazakhstan and geopolitical pressure from US threats of tariffs over its bid to gain control of Greenland.
Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
The ringgit, palm's currency of trade, weakened 0.07 per cent against the dollar, making the commodity slightly cheaper for buyers holding foreign currencies.
Palm oil prices in February are expected to remain rangebound between RM4,000 and RM4,300 (US$987-US$1,061) per ton, supported by seasonal declines in production and stocks, the Malaysian Palm Oil Council said.
European Union soybean imports for the 2025/26 season that began in July had reached 6.73 million metric tons by January 15, down 16 per cent year-on-year, while palm oil imports fell 3 per cent to 1.65 million tons, European Commission data showed.
Cargo surveyors estimated exports of Malaysian palm oil products for January 1-20 to have risen between 8.64 per cent and 11.4 per cent from month-on-month.
Palm oil may revisit its January 13 high of RM4,147 per metric ton, driven by a wave C, Reuters technical analyst Wang Tao said.
Asian stocks extended losses to a third session on Wednesday, undone by heightened tensions over US threats to acquire Greenland ahead of President Donald Trump's Davos speech, while a global bond rout appeared to slow for now.
