Malaysian palm oil futures increased on Wednesday due to the commodity’s competitive pricing compared to rival oils. The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange rose by 46 ringgit (1.21%) to 3,861 ringgit per metric ton. Market attention is focused on the export and production performance data for the first half of May.
Dalian’s most-active soyoil contract increased by 0.15%, while its palm oil contract remained flat. Soyoil prices on the Chicago Board of Trade went up by 0.67%. Palm oil prices are influenced by movements in related oils due to competition in the global vegetable oils market.
Ahead of the monthly US soy crushing data from the National Oilseed Processors Association, analysts expect a decrease in crushed soybeans from March’s record-high but an increase from the previous year.
India’s palm oil imports in April reached a three-month high, increasing by 40.9% from the previous month to 684,094 metric tons due to lower prices.
Additionally, oil prices rose on Wednesday due to expectations of higher demand, a weakening US dollar, and reports of falling US crude and gasoline inventories, which suggest a more positive economic outlook. Higher crude oil futures make palm oil more attractive for biodiesel feedstock. According to a technical analyst at Reuters, palm oil may stabilise in the support zone of 3,760-3,787 ringgit per metric ton and potentially rebound.
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.
