JAKARTA: Malaysian palm oil futures opened lower for the third straight session on Wednesday as the market was weighed down by weaker vegetable oils prices at the Dalian market.
The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange lost RM36, or 0.8 per cent, to RM4,469 (US$1,058.00) a metric ton in early trade.
Dalian’s most-active soyoil contract lost 1.27 per cent, while its palm oil contract shed 1.16 per cent. Soyoil prices on the Chicago Board of Trade were up 0.02 per cent.
Palm oil tracks price movements of rival edible oils, as it competes for a share of the global vegetable oils market.
The Malaysian Palm Oil Council said on Tuesday that crude palm oil prices will hold steady above 4,400 ringgit (US$1,042) per metric ton heading into 2026, amid uncertain palm and soybean oil exports.
According to cargo surveyor Intertek Testing Services, exports of Malaysian palm oil products for October 1-20 rose 3.4 per cent compared to the September 1-20 period, while independent inspection company AmSpec Agri Malaysia said it rose 2.5 per cent.
Indonesia’s biodiesel consumption from January to September stood at 10.57 million kilolitres, its energy minister Bahlil Lahadalia said on Wednesday, up nearly 10 per cent from 9.61 million kilolitres a year earlier.
Oil prices pushed higher for a second day on Wednesday, buoyed by sanctions-related supply risks, hopes of a US-China trade deal and news that the US is seeking oil for delivery to its strategic reserve.
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
The ringgit, palm’s currency of trade, traded flat against the dollar. A weaker ringgit would make the commodity less expensive for buyers holding foreign currencies.
Palm oil FCPOc3 may break support at RM4,484 per metric ton, and fall towards RM4,456, Reuters technical analyst Wang Tao said.
Global shares slipped on Wednesday and gold pulled back sharply from a blistering rally, as stretched valuations came under scrutiny and investors booked profits.
Source: New Straits Times
