Malaysian palm oil prices climb due to Middle East tensions

Malaysian palm oil futures surged on Wednesday as escalating Middle East tensions sparked a sharp rise in crude oil prices, lifting palm oil’s appeal as a biodiesel feedstock. The uptick in Malaysian palm oil prices comes after Iran’s ballistic missile strike on Israel heightened fears of a broader conflict, potentially disrupting crude oil production in the region. The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange rose by 39 ringgit (0.97%) to 4,045 ringgit ($972.59) per metric ton by midday, continuing a 1.8% gain from overnight trading. Simultaneously, Brent crude futures for December delivery increased by 1.88% to $74.94 per barrel. Higher crude oil prices make palm oil a more attractive biodiesel option, which, in turn, pushes up its demand and price. Rising crude oil prices due to geopolitical unrest are making palm oil a go-to for biodiesel, influencing global edible oil markets. Investors should note that other edible oils, ...