Palm oil ends up supported by rival oils at Dalian

Published Nov 8, 2024

Tridge summary

Malaysian palm oil futures increased by 0.67% to 4,950 ringgit per metric ton, driven by gains in rival vegetable oils on the Dalian market, despite a decline in soyoil prices on the Chicago Board of Trade. The global palm oil market is influenced by competition with other edible oils. Indonesia plans to raise its palm oil blend in biodiesel to 50% by 2028, while India's vegetable oil imports are projected to decrease in the 2024-25 season due to higher domestic production, although October saw a surge in palm oil imports due to festive demand. The ringgit's stability against the U.S. dollar impacts the cost of vegetable oil for international buyers, and steady crude oil prices make palm oil a more appealing biodiesel feedstock.

Disclaimer: The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Malaysian palm oil futures closed higher and reversed early losses on Thursday, supported by gains from rival vegetable oils at the Dalian market. The benchmark palm oil contract FCPOc3 for January delivery on the Bursa Malaysia Derivatives Exchange gained 33 ringgit or 0.67%, to 4,950 ringgit ($1,125.00) a metric ton on the closing. Dalian’s most-active soyoil contract DBYcv1 rose 1.78%, while its palm oil contract DCPcv1 gained 2.8%. Soyoil prices on the Chicago Board of Trade BOcv1 were down 0.56%. Palm oil tracks the price movements of rival edible oils as it competes for a share in the global vegetable oils market. Indonesia’s government is proposing to increase the mandatory blend of palm oil-based fuel in biodiesel to 50% in 2028, Edi Wibowo, director of bioenergy at the Energy and Mineral Resources Ministry, told an industry conference on Thursday. India’s vegetable oil imports are estimated to decline further in the 2024-25 season to 15 million tons, as favourable weather ...

Source: Hellenic Shipping News