Palm opens lower on weaker Dalian palm olein, crude oil

Malaysian palm oil futures fell for a second straight session on Thursday, pressured by weaker Dalian palm olein and crude oil, and expectations of higher output.

The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange slid 31 ringgit, or 0.75 per cent, to 4,093 ringgit (US$968.99) a metric ton in early trade.

Dalian’s most-active soyoil contract rose 0.1 per cent, while its palm oil contract shed 0.87 per cent. Soyoil prices on the Chicago Board of Trade were up 0.08 per cent.

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

Oil prices fell for a second day as an industry report showing rising crude inventories in the US, the world’s biggest crude consumer, reinforced concerns that global supply is more than ample to meet current fuel demand.

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

The ringgit, palm’s currency of trade, strengthened 0.07 per cent against the dollar, making the commodity more expensive for buyers holding foreign currencies.

Malaysia’s crude palm oil production is expected to surpass 20 million tons for the first time in 2025, supported by favourable weather, improved labour supply, and higher-yielding new plantations, trade and industry officials told Reuters.

Indonesia’s palm oil output for January to September was more than 43 million tons, an annual increase of 11 per cent, Indonesia Palm Oil Association (GAPKI) chair Eddy Martono said.

Stocks and gold paused for breath on Thursday as the US Congress voted to end the longest government shutdown on record, with markets waiting for the resumption of US economic data to gauge the rates outlook.

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