Palm oil rises on stronger Dalian oils, India demand optimism

Published Feb 6, 2025

Tridge summary

Malaysian palm oil futures experienced a rebound on Wednesday, driven by gains in Dalian edible oils and optimism about potential palm oil demand from India. The benchmark palm oil contract for April delivery on the Bursa Malaysia Derivatives Exchange rose 0.46% to 4,328 ringgit a metric ton, recovering from a 1.35% drop the previous day. The strength in Chinese vegetable oils also contributed to the upward pressure on crude palm oil futures. However, palm oil imports in India, which hit multi-year lows in January, remain a concern due to refiners' preference for cheaper soyoil. Meanwhile, European Union soybean imports have increased in the 2024-25 season, while palm oil imports have decreased.

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

Original content

Malaysian palm oil futures reversed early losses on Wednesday, supported by gains in rival Dalian edible oils, while traders were optimistic about the potential resumption of palm oil demand from India. The benchmark palm oil contract for April delivery on the Bursa Malaysia Derivatives Exchange gained 20 ringgit, or 0.46%, to 4,328 ringgit ($977.64) a metric ton at the midday break. The contract dropped 1.35% on Tuesday. Market participants are optimistic about India resuming palm oil purchases to replenish its stocks after the country’s palm oil imports hit multi-year lows in January, said Anilkumar Bagani, commodity research head at Mumbai-based Sunvin Group. “The broader positive trade in Chinese vegetable oils during Asian hours was also a factor behind some strength seen in crude palm oil futures,” Bagani said. Dalian’s most-active soyoil contract rose 2.74%, while its palm oil contract added 2.27%. Soyoil prices on the Chicago Board of Trade shed 0.17%. Palm oil tracks ...

Source: UkrAgroConsult