KUALA LUMPUR: Malaysian palm oil futures reversed losses suffered through three consecutive sessions on Wednesday, as encouraging export figures helped offset concerns around high inventories and mounting U.S.-China trade tensions.
The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange rose 13 ringgit, or 0.29%, to 4,474 ringgit ($1,057.93) a metric ton at the close.
The outlook for fourth-quarter demand growth remains uncertain, as many buyers prefer to wait for price dips before purchasing, said Paramalingam Supramaniam, director at Selangor-based brokerage Pelindung Bestari.
“With end stocks still high and the China-U.S. truce potentially at risk of a collapse, the market remains vulnerable to intermittent selling pressure,” Supramaniam added.
Malaysia’s palm oil stocks rose to a near two-year high in September, data from the industry regulator showed last week.
Cargo surveyors estimated that exports of Malaysian palm oil products for October 1 to 15 rose between 12.3% and 16.2% compared with the same period a month earlier.
Dalian’s most-active soyoil contract fell 0.22%, while its palm oil contract shed 0.47%. Soyoil prices on the Chicago Board of Trade were up 0.16%.
Palm oil tracks the price movements of rival edible oils, as it competes for a share of the global vegetable oils market.
Oil prices edged lower, as investors weighed the International Energy Agency’s prediction of a supply surplus in 2026 and trade tensions between the United States and China that could curtail demand.
Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
The ringgit palm’s currency of trade, weakened 0.02% against the dollar, making the commodity slightly cheaper for buyers holding foreign currencies.
Indonesia may regulate exports of crude palm oil to ensure enough supply for biodiesel, its energy minister said.
Malaysia has lowered its November crude palm oil reference price to a level that maintains export duty at 10%.
American Dollar Exchange Rate