Palm oil opens higher on stronger rival oils, crude oil prices
Malaysian palm oil futures jumped 2.35% to RM4,131 a ton on Friday, driven by gains in rival edible oils and firmer crude oil prices. A weaker ringgit and renewed Indian buying further supported prices. Analysts say palm oil may soon break resistance at RM4,072 and climb toward RM4,176 amid bullish technical signals and global market shifts.
KUALA LUMPUR: Malaysian palm oil futures rose on Friday, supported by gains in rival edible oils and stronger crude oil prices.
The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange gained RM95, or 2.35 per cent, to RM4,131 a metric ton in early trade.
Dalian’s most-active soyoil contract rose 1.89 per cent, while its palm oil contract added 2.58 per cent. Soyoil prices on the Chicago Board of Trade were up 1.2 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 edged higher but were on track for a weekly loss as a potential OPEC+ output increase and a possible ceasefire in the Russia-Ukraine war may raise supply at the same time conflicting US tariff signals limit the demand outlook.
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
The ringgit, palm’s currency of trade, weakened 0.05 per cent against the dollar, making the commodity cheaper for buyers holding foreign currencies.
The European Commission forecasts EU palm oil imports in 2025/26 at 2.5 million tons compared to 3.0 millions tons last month.
India has started raising palm oil purchases after a lull of five months as a correction in prices has made the tropical oil cheaper than rival soyoil, encouraging refiners to place orders to replenish inventories, four dealers said.
Palm oil is poised to break resistance at RM4,072 per metric ton and rise into RM4,119 to RM4,176 range, Reuters technical analyst Wang Tao said.
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Source : NST Online
