Malaysian palm oil futures rose for a second consecutive session on Wednesday, driven by short-covering activity and gains in global edible oil markets. The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange surged by 66 ringgit, or 1.55%, reaching 4,330 ringgit ($1,025.09) per metric ton at midday.
Market sentiment turned bullish after Dalian palm olein and Chicago soyoil prices extended their gains. A trader based in Kuala Lumpur noted, “Dalian’s rally was driven by both short-covering and technical buying,” which spilled over into crude palm oil prices in Malaysia.
Malaysian Palm Oil Futures Rebound on Strong Soyoil, Crude Prices, and Weaker Ringgit
The benchmark contract reached an intraday high of 4,334 ringgit, with traders pointing to technical momentum after breaching the 4,300-ringgit threshold. Dalian’s most-active soyoil contract rose by 0.3%, while its palm oil contract increased by 1.59%. In the U.S., soyoil on the Chicago Board of Trade saw a 0.79% uptick.
Palm oil futures often follow movements in rival vegetable oils due to competition for global market share. Furthermore, rising crude oil prices in Asian markets, after a three-day slump, added support by enhancing palm oil’s appeal as a biodiesel feedstock.
Currency dynamics also played a role, with the ringgit appreciating 0.12% against the U.S. dollar, making Malaysian palm oil marginally costlier for international buyers.
Despite the current uptrend, analysts urge caution. Technical analyst Wang Tao from Reuters indicated that palm oil could retest support at 4,198 ringgit. A decisive break below this level may lead to further declines toward 4,150 ringgit.
Meanwhile, the European Commission reported a sharp year-on-year decline in vegetable oil imports. EU soybean imports for the 2025–26 season fell 32% to 519,609 metric tons, while palm oil imports plunged 53% to 93,234 metric tons, reflecting subdued demand from the region.
With global edible oil markets in flux and technical factors playing a critical role, traders remain watchful for further cues in the coming sessions.
