Palm oil sets third weekly gain on Ramadan demand, production declines

However, the weakening Malaysian ringgit made exports more competitive, he added.

“Market sentiment is further buoyed by expectations of increased demand leading up to Ramadan as seasonal events typically drive higher consumption and stocking of palm oil,” Lim said.

“This, coupled with the anticipation of lower production figures due to historical seasonal factors, has fostered optimism, further supporting the rise in palm oil prices.”

Dalian’s most active soyoil contract rose 3.25 per cent, while its palm oil contract added 2.94 per cent. Soyoil prices on the Chicago Board of Trade fell 0.04 per cent.

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

The Malaysian Palm Oil Board is expected to release the monthly supply and demand data on February 10.

Oil prices rose after new sanctions were imposed on Iran’s crude exports but were on track for a third straight week of decline, hurt by US President Donald Trump’s renewed trade war on China and threats of tariffs on other countries.

Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.