Palm oil rises as crude oil prices climb

Malaysian palm oil futures ended September 14 higher, supported by further gains in crude oil prices and strength in Chicago soybean oil. The November contract on Bursa Malaysia Derivatives rose by 39 ringgit, or 0.81%, to 4,853 ringgit/t ($1,191/t).

The market was supported by a more than 3% rise in crude oil prices following new attacks on Saudi energy infrastructure and ships in the Middle East. Higher crude oil prices improve the competitiveness of palm oil as a biodiesel feedstock.

Other vegetable oils showed mixed performance. Dalian’s most-active soybean oil contract fell 1.08%, while palm oil declined 1.24%. On the CBOT, soybean oil gained 0.14%.

Malaysian prices also received support from a 0.15% weakening of the ringgit against the US dollar, making palm oil cheaper for buyers using other currencies.

At the same time, export demand remains subdued. Cargo surveyors estimated that Malaysian palm oil exports for September 1–10 fell by 11.7–17.5% compared with the same period a month earlier.

Tags: palm oil, crude oil, prices, Malaysia