And, recovering from earlier losses as gains in rival soyoil, stronger crude oil prices, and a weaker ringgit improved the commodity’s competitiveness on the global stage.
The benchmark October palm oil contract on the Bursa Goods rose by 45 ringgit, or 1.08%, to 4,208 ringgit ($990.58) per metric ton by the midday break.
“The futures opened gap higher today, following a resurgent movement in Chicago soyoil, ICE Canola, and Euronext Rapeseed futures Tuesday overnight and an uptick in Asian hours for Chicago soyoil and energy prices,” said Anilkumar Bagani, Head of Research at Sunvin Group, a Mumbai-based vegetable oil brokerage.
Petrol, Diesel Prices Hiked Again as Global Oil Surge Continues
Supportive Trends in Edible Oil Markets
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CBOT soyoil gained 0.77%
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Dalian soyoil rose 0.4%
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Dalian palm oil edged down 0.07%
Palm oil often tracks rival edible oils such as soyoil, canola, and rapeseed due to its shared role in the global vegetable oil market.
Energy Prices and Currency Play Their Part
Global crude oil prices advanced on expectations of strong summer demand from the U.S. and China, the world’s top two consumers. Stronger oil makes palm oil more appealing for biodiesel production, adding bullish momentum.
At the same time, the ringgit, Malaysia’s palm oil trading currency, fell 0.21% against the U.S. dollar, making Malaysian palm oil cheaper for foreign buyers and supporting export competitiveness.
Export Data Mixed but Technicals Remain Strong
Despite the positive price action, recent export estimates showed a moderate decline:
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AmSpec Agri Malaysia: Exports fell 5.3% (July 1–15 vs June 1–15)
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Intertek Testing Services: Estimated a 6.2% drop
Still, technical indicators point to potential upside:
“Palm oil may retest resistance at 4,231 ringgit per metric ton,” noted Reuters technical analyst Wang Tao, adding that a breakout could lift prices toward the 4,254–4,292 ringgit range.
With traders watching for updated export and inventory data, palm oil markets may remain volatile but supported by broader global demand signals and currency dynamics.