Palm extends gains on strength in Dalian soyoil, weaker ringgit

Malaysian palm oil futures rose for a second session on Thursday, tracking strength in Dalian edible oils, but gains were capped by a firm ringgit and weak crude oil.

The benchmark palm oil contract for February delivery on the Bursa Malaysia Derivatives Exchange gained RM34, or 0.84 per cent, to RM4,058 (US$983.04)a metric ton by 0241 GMT.

Dalian’s most-active soyoil contract gained 1.28 per cent, while its palm oil contract increased 1.1 per cent. The Chicago Board of Trade is closed on Thursday for the Thanksgiving holiday.

Palm oil tracks price movements of rival edible oils, as it competes for a share of the global vegetable oils market.

Malaysia commodities minister said on Thursday palm oil exports to China fell by almost 29 per cent in the first 10 months of 2025.

Exports of Malaysian palm oil products for the November 1-22 period were seen down between 16.4 per cent and 18.8 per cent from a month earlier, according to independent inspection company AmSpec Agri and cargo surveyor Intertek Testing Services.

Oil prices fell on expectations of a Ukraine-Russia ceasefire, which could pave the way for the unwinding of Western sanctions against Russian supply, though trading was set to remain thin due to the US Thanksgiving holiday.

Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.

The ringgit, palm’s currency of trade, strengthened 0.12 per cent against the dollar, making the commodity more expensive for buyers holding foreign currencies.

Asian stocks rose and the dollar was soft on growing expectations of an interest rate cut from the Federal Reserve next month, while the yen stayed in the spotlight, with traders weighing the prospect of a rate hike before the end of the year.

Tags: futures, benchmark contract, soyoil, Malaysia, palm oil