JAKARTA: Malaysian palm oil futures inched higher on Monday from a 21-week closing low in the previous session, as bargain-buying and production concerns outweighed pressure from a stronger ringgit.
The benchmark palm oil contract for February delivery on the Bursa Malaysia Derivatives Exchange gained 14 ringgit, or 0.34%, to 4,083 ringgit ($986.23) a metric ton by the midday break.
It fell 2% on Friday to 4,069 ringgit, its lowest close since July 4.
“Prices after the selloff (on Friday) were met with buying interest on dips, after the severity of the rains was sighted,” said Paramalingam Supramaniam, director at Selangor-based brokerage Pelindung Bestari.
Reports of floods in several states are keeping prices supported, he said, adding that production was expected to dip slowly in December until the first quarter of 2026.
“It is certainly delayed, but very soon the impact of the monsoon will be more pronounced once major producing states start getting more rain falls,” Supramaniam said.
More than 11,000 people in seven Malaysian states have been affected by flooding caused by torrential rain, the national disaster agency said.
Dalian’s most-active soyoil contract fell 0.24%, while its palm oil contract shed 1.18%.
Soyoil prices on the Chicago Board of Trade were up 0.32%. Palm oil tracks price movements of rival edible oils, as it competes for a share of the global vegetable oils market.
The ringgit, palm’s currency of trade, strengthened 0.14% against the dollar, making the commodity more expensive for buyers holding foreign currencies.
Palm oil may fall further into a range of 3,991 ringgit to 4,034 ringgit per ton, driven by a wave (5), said Reuters technical analyst Wang Tao.
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