Palm oil ends up supported by rival oils at Dalian

Published Nov 8, 2024

Tridge summary

Malaysian palm oil futures rose on Thursday, reversing earlier losses due to gains in rival vegetable oils at the Dalian market, with the January delivery contract increasing by 0.67% to 4,950 ringgit per metric ton. While Dalian's soyoil and palm oil contracts saw gains, Chicago's soyoil prices fell. The global market competition among edible oils influences palm oil prices. Indonesia plans to increase its palm oil blend in biodiesel to 50% by 2028, and India's vegetable oil imports are expected to decline in 2024-25 due to better domestic production, despite a surge in October imports. The ringgit's stability against the U.S. dollar affects vegetable oil costs for foreign buyers, and oil prices remain steady amid geopolitical and supply concerns. UkrAgroConsult offers AgriSupp, a platform for market intelligence on grains and oilseeds, with a 7-day free demo available.

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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 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 rose 1.78%, while its palm oil contract gained 2.8%. Soyoil prices on the Chicago Board of Trade 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 will likely boost domestic ...

Source: UkrAgroConsult