Palm oil futures rose on Wednesday, recovering some of the losses experienced in the previous session. This upward trend was influenced by gains in rival vegetable oils on the Dalian Commodity Exchange. The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange saw an increase of 46 ringgit, or 1.18%, reaching 3,929 ringgit ($834.54) per metric ton by midday. The contract had already gained 1.06% during overnight trade.
A Kuala Lumpur-based trader noted that while palm oil futures are benefiting from gains in the Dalian market, a stronger ringgit is limiting these gains. On the Dalian Commodity Exchange, the most-active soyoil contract rose by 1.17%, and the palm oil contract increased by 1.47%. Meanwhile, trading on the Chicago Board of Trade was closed due to the Juneteenth holiday.
Palm oil prices are influenced by movements in related oils as they vie for market share in the global vegetable oils market. Official data revealed that European Union palm oil imports for 2023/24 totalled 3.22 million tons as of June 16, a decrease from the 3.97 million tons imported the previous year.
The export situation for Malaysian palm oil products also reflected a decline. Estimates for exports from June 1-15 showed a fall between 19.8% and 21.6%, according to cargo surveyor Intertek Testing Services and independent inspection company AmSpec Agri Malaysia. However, cargo surveyor Societe Generale de Surveillance (SGS) reported that Malaysian palm oil exports for the same period amounted to 488,388 metric tons, an increase from the 426,947 metric tons shipped during May 1-15, as per data from LSEG.
Reuters technical analyst Wang Tao suggested that palm oil might continue to rise into the 3,965 ringgit-4,011 ringgit range after failing to break support at 3,889 ringgit.
Dekel Agri-Vision PLC (LON:DKL) aspires to become a leading agro-industrial company in West Africa, one that creates value for shareholders whilst at all times placing the interests of the local communities and environment in which it operates in at the heart of its operations.
